Samsung chip ambitions could shake up as Donald Trump is set to take over as the US President. TSMC and SK Hynix are also on the radar as Trump could scrap the CHIPS and Science Act, removing subsidies and imposing tariffs. The geopolitical debacle will last long. Meanwhile, Korea is preparing to safeguard Samsung and SK Hynix from the possible threat during Trump’s presidency.
Yesterday, the Korean govt reportedly introduced a bill, aiming to offer subsidies and flexible working hours to chip giants including Samsung and SK Hynix. This move could trigger the new-forming US administration led by Donald Trump.
The legislation pledges subsidies for local chipmakers and exemption from a national cap on working hours. That said, chip manufacturers can extend the working hours that have been capped by the South Korean law.
It could impact key chip workers at Samsung and SK Hynix. They will have to stay longer at the workplace, potentially impacting their work-life balance. The Korean govt is doing it to tackle potential risks from measures threatened by Donald Trump.
During the election campaign last month, the incoming US President Donald Trump threatened to scrap federal CHIPS Act subsidies for Taiwan’s TSMC, South Korea’s Samsung and SK Hynix, and others, in favor of import tariffs.
The semiconductor industry could be impacted significantly due to Trump’s America First policy. Cancellation or cuts in CHIPS subsidies and tariffs could hurt Samsung as it also braces for growing competition from rivals.
“The bill will help Korean companies fend off challenges as China, Japan, Taiwan and the United States give subsidies to manufacturers amid a semiconductor trade war between China and the US,” one of the bill’s sponsors, lawmaker Lee Chul-gyu, said in a statement.
Via – Reuters
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