South Korea will allocate 14.3 trillion won (US$10.2 billion) to support domestic chipmakers in 2025, as announced by the country’s finance ministry.

The plan includes loans from state-affiliated banks and funding for infrastructure, including the 1.8 trillion won (US$1.29 billion) needed to bury power cables underground in semiconductor clusters near Seoul.

This initiative follows a 26 trillion won (US$18.6 billion) aid package from July.

The added support arises from potential economic variations related to the incoming United States administration and heightened competition from China’s tech sector.