South Korea's 10 trillion Won Push For In-House Semiconductor Business After US Restriction On China

South Korea's 10 trillion Won Push For In-House Semiconductor Business After US Restriction On China

South Korea is pushing to set up a package worth over 10 trillion won ($7.28 billion) to support the chip industry, according to its Finance Ministry.

Vikrant DurgaleUpdated: Monday, May 13, 2024, 01:53 PM IST
article-image
Semiconductor | FPJ Library

As part of its efforts to strengthen the competitiveness of the vital industry and to support economic growth, South Korea is pushing to set up a package worth over 10 trillion won ($7.28 billion) to support the chip industry, according to its Finance Ministry.

Finance Minister Choi Sang-mok stated during his tour of a nearby chip manufacturing company that the planned assistance program, worth more than 10 trillion won, intends to support investment, research, and development programs for all sectors of the chip industry, from chip materials to manufacturing equipment and components.

Slience before the storm

According to the report, the US is prepared to impose a 100% tariff on electric vehicles that are imported from China. If implemented, the new actions will represent a significant uptick in the US-China trade war and might result in tit-for-tat tariffs from the Chinese government led by Xi Jinping.

American foreign policy Toolbox

The US administration's top officials voiced dissatisfaction over China's "overcapacity" in producing electric vehicles, citing concerns for US jobs and national security. This led to the reported four-fold increase in tariffs from the current 25%.

Sanctions are a vital component of the American foreign policy toolbox, They cover a wide range of economic limitations, such as trade restrictions, export controls, and financial sanctions. Their purpose is to compel organizations or people to take certain actions.

The United States possesses a plethora of potent sanctions at its disposal, some of which have the capacity to force significant Chinese companies out of the global financial system and weaponize the dollar's pivotal role within it.

However, Washington has preferred to counter provocations by placing restrictions on a small number of Chinese companies or sanctioning Chinese officials personally. The United States has chosen to counter China's economic practices with tariffs and trade restrictions in addition to technology-related sanctions, rather than employing more forceful measures.

South Korea's 10 trillion won push for in-house chip manufacturing is possibly due to the US imposing a trade embargo and restrictions on flow chips and technology from China to the US, but this flow needs to be replaced with someone with the same level of quality manufacturing. This 10 trillion won package for chip making might be the result of that. Resulting trade war between Washington and Beijing.

RECENT STORIES

India Can Become World's 2nd Largest Economy By 2031, Says RBI Deputy Governor Michael D Patra

India Can Become World's 2nd Largest Economy By 2031, Says RBI Deputy Governor Michael D Patra

India's Retail Inflation Climbs To 5.08% In June; Check Key Details Here

India's Retail Inflation Climbs To 5.08% In June; Check Key Details Here

Honda Unveils UK-Exclusive Limited Edition Africa Twin Adventure Roads

Honda Unveils UK-Exclusive Limited Edition Africa Twin Adventure Roads

State Govt Proposes To Amend Maharashtra Stamp Act, Reduce Penalty

State Govt Proposes To Amend Maharashtra Stamp Act, Reduce Penalty

ACKO Provides Expert Guidance On The Things To Consider While Switching Bike Insurance

ACKO Provides Expert Guidance On The Things To Consider While Switching Bike Insurance