Industry Ministry to ease uncertainty for semiconductor sector through cooperation with Trump administration

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Industry Ministry to ease uncertainty for semiconductor sector through cooperation with Trump administration

Published: 20 Nov. 2024, 17:11

Industry Minister Ahn Duk-geun speaks at the government complex in central Seoul on Aug. 14.[YONHAP]

Industry Minister Ahn Duk-geun emphasized Wednesday that the government will prioritize removing uncertainties in the semiconductor sector by closely engaging with the incoming U.S. administration under President-elect Donald Trump.

"As the United States is a major semiconductor market and a key investment destination for Korean companies, we must closely monitor any shifts in U.S. policy and thoroughly prepare for all possibilities," Ahn said during a meeting with officials from major Korean chipmakers, including Samsung Electronics and SK hynix.

"We will work to resolve uncertainties by maintaining close communication with the new U.S. administration through various diplomatic and trade channels," he added.

Semiconductors are Korea's largest export product, and concerns are mounting over possible policy changes in the United States, including the introduction of universal tariffs or reductions in investment subsidies under the CHIPS and Science Act.

Samsung Electronics and SK hynix have plans to build or expand their facilities in the United States.

During the meeting, industry officials urged the Korean government to strengthen cooperation with the U.S. administration to help ensure the stability of Korean investments and exports.

The Korea Semiconductor Industry Association highlighted that any significant policy changes in the United States would profoundly affect the global semiconductor supply chain, as Korea, the U.S., Taiwan and other major chip-producing nations are closely interconnected.

Later in the day, Minister Ahn held a separate meeting with representatives from the shipbuilding industry, which is anticipated to see greater business opportunities in the United States.

Following the U.S. presidential election, Trump emphasized the need for enhanced bilateral cooperation in shipbuilding, particularly in naval shipbuilding and the maintenance, repair and overhaul (MRO) service, during a telephone conversation with Korean President Yoon Suk Yeol.

Korea's Hanwha Ocean recently secured two MRO contracts with the U.S. Navy for the regular overhaul and inspection of naval vessels, signaling growing opportunities in the field.

"The shipbuilding industry is a newly developing area of collaboration, unlike established sectors such as automobiles and semiconductors," Ahn said. "We must prepare more swiftly and precisely, considering the differing industrial environments, laws and regulations in the two countries."

He called for concerted efforts to seize the opportunity to "open new markets" for the Korean shipbuilding industry.

Yonhap