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Protection racket? Asian semiconductor giants fear looming tariffs

  • South Korea and the United States are negotiating a trade package as Trump's pause on reciprocal tariffs expires on July 8, 2025.
  • The trade package aims to prevent new US tariffs that intend to pressure Asian chipmakers to relocate production stateside.
  • South Korea and Taiwan, key semiconductor exporters with historic high shipments in 2024, face risks from complex tariffs impacting chipmakers and consumer prices.
  • A former MediaTek engineer described building US fabs as paying protection money, noting the projects yield super low margins in high-cost America.
  • Experts warn significant tariffs could hit demand, raise prices, and inflict heavy blows on a sector vital to national security and the global economy.
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Protection racket? Asian semiconductor giants fear looming tariffs

Inside one of South Korea's oldest semiconductor research institutes, the cleanrooms and workshops are calm and immaculate, but outside the Seoul National University campus, a chip storm is brewing.

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indrastra.com broke the news in on Monday, May 12, 2025.
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