South Korea’s ruling party introduced a special bill aimed at supporting the semiconductor industry amidst growing competition.Â
The legislation proposes offering subsidies to chipmakers and allowing exemptions from the country’s labor laws, particularly the 52-hour weekly work limit for certain employees.
This move comes in response to concerns over potential threats from the U.S. and increasing competition from countries like China, Taiwan, and Japan.
The semiconductor sector is vital for South Korea’s economy, contributing significantly to exports.
With U.S. President Donald Trump’s previous threats of tariffs on Chinese imports, South Korean officials have been worried about how this might harm local chipmakers.
In response, President Yoon Suk Yeol highlighted the importance of protecting South Korea’s market share.
The bill would provide a much-needed edge for local companies like Samsung, as global competitors, including Chinese firms, continue to push into the market.
A key aspect of the bill allows extended working hours for certain research and development employees, a point of contention within labor unions.
Samsung, in particular, faces challenges after disappointing profit reports, exacerbated by competition from companies like Taiwan’s TSMC.
The proposed changes aim to bolster South Korea’s standing as global semiconductor leaders, countering the aggressive moves by other countries and maintaining an edge in AI chip manufacturing.
