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  • African health care systems are cut off by USAID

    African health care systems are cut off by USAID

    As clouds gather and humidity rises across west Africa, whose annual rains bring an uptick of deadly, malaria-carrying mosquitoes, Musa Adamu Ibrahim, a nurse, is sitting at home, unemployed.

    In Nigeria — home to 30 percent of the world’s annual 600,000 malaria deaths — clinics that once served 300 people a day in the conflict-hit Borno state have abruptly shut down, Ibrahim and other laid-off workers told AFP, following the withdrawal of American funding by President Donald Trump.

    “The clinics have been closed and (there are) no more free drugs or mosquito nets,” said Ibrahim.

    The sudden dismantling of USAID — the country’s main foreign development arm — is unravelling health care systems across Africa that were built from a complicated web of national health ministries, the private sector, nonprofits and foreign aid.

    As the effects of the cuts compound, the resulting damage — and deaths — are unlikely to end anytime soon: malaria cases will peak around the end of the rainy season, while threatened American cuts to global vaccine funding would likely be felt later in the year.

    In the meantime, the ripple effects continue to spread: alongside laid-off workers, malnutrition clinics have shuttered doors in Nigeria.

    Rattled supply chains mean drugs are at risk of being stuck in warehouses in Mali. Children are walking miles to reach care in South Sudan for cholera care and dying along the way, and refugee camps in Kenya are facing medicine shortages.

    “People with resources will be able to go and get drugs… but the poorest of the poor, out in remote areas of Nigeria and other parts of sub-Saharan Africa, they’re the ones who will be cut off,” said Lawrence Barat, a former senior technical advisor for the US President’s Malaria Initiative (PMI).

    “They’re the ones whose children will die.”

    During malaria’s seasonal peak, Ibrahim once saw clinics he worked at treat 300 patients a week. Fatima Kunduli, another laid-off aid worker in Borno, said her clinic was seeing 60 children per day for malnutrition and malaria care before it shut down.

    As downpours progressively cascade across west Africa — Nigeria’s have just started, while Senegal’s rains won’t arrive until May — countries that have made in some cases significant progress in stamping out malaria in recent decades will now be doing so without a major financial backer.

    Forecasts developed by ministries of health across the continent to plan for the rainy season have deep holes blown in them, said Saschveen Singh, an infectious disease specialist with Doctors Without Borders in France.

    The complex mix of funding sources in each nation — from local governments to internationalnonprofits — means US programmes worked differently in every country.

    In Mali, seasonal malaria chemoprevention drugs given to young children won’t have an issue coming into the country — but American funds were crucial for coordinating their distribution, Singh told AFP.

    Meanwhile, in the Democratic Republic of Congo, the USAID-supported PMI was the primary malaria drug and test provider to government health facilities in nine provinces.

    “Suddenly, they’ll just not have drugs, and it’s going to be very difficult for other actors to step in,” said Singh, adding her co-workers are “scrambling” to map out where gaps may arise.

    In South Sudan, USAID-funded clinics have closed amid a cholera outbreak. Children are walking hours to the next closest treatment centre, with at least five dying along the way in the country’s eastern Jonglei state, British charity Save the Children reported earlier this month.

    In neighbouring Kenya’s Kakuma refugee camp, which hosts more than 300,000 people, protests broke out in March when it was announced rations would be lowered, and doctors are running out of medicine.

    “All the clinics around, you can get paracetamol. But all other drugs, no,” one camp elder, who asked to remain anonymous, told AFP during a recent visit.

    At Kinkole General Hospital, in Kinshasa, doctors were recently treating 23 mpox patients isolated in tents free of charge thanks to American support. But workers have no idea if that funding will continue, despite an outbreak that has infected 16,000 and killed 1,600.

    “We’re thinking a disaster is coming,” said Yvonne Walo, an epidemiologist at the centre.

    The hits to health care systems are set to keep coming.

    Washington is reportedly considering pulling back its funding to Gavi, the organisation that procures vaccinations for the world’s poorest countries.

    Cuts would be almost guaranteed, with Gavi chief executive Sania Nishtar telling AFP that “this is too big a hole to be filled.”

    If confirmed, John Johnson, a vaccination and epidemic response advisor with Doctors Without Borders, expects programmes to start coming under strain later this year.

    In Borno, whose governor recently warned of a resurgence of the Boko Haram jihadist group, Kunduli, the laid-off aid worker, said even with US funding the work was “overwhelming.”

    Now, “I could only imagine.” AFP

  • OTT Monetization Model: Paywalled content that rides the wave of ad-supported shows

    OTT Monetization Model: Paywalled content that rides the wave of ad-supported shows

    Ad-supported, free-to-watch shows such as Ek Badnaam Aashram and Hip Hop India on Amazon MX Player made a splash when they dropped on the streaming platform over the past two months, topping OTT viewership charts for several weeks and reinforcing the view that AVoD (advertising video-on-demand) content can serve as a potent hook for consumers to convert them into subscribers.

    Entertainment industry experts say that while free programming will continue to generate high viewership and reach, given the easy access and sampling, it is the paywalled content for subscribers that will bring in real revenue and engagement. In essence, a hybrid model of content monetization is the way forward for over-the-top platforms, they argued.

    There is a clear trend where free, ad-supported content is attracting a larger audience compared to subscription-based models, Kaushik Das, founder and CEO of AAONXT, a platform specialising in Odia content, said.

    “The ease of accessibility and zero cost make AVoD an attractive choice, especially in price-sensitive markets like India. As more platforms adopt a hybrid model, AVoD will serve as an entry point for users who may later opt for premium content through SVoD.

    However, the key to sustaining SVoD growth will be exclusive, high-quality content that justifies its price—be it through early access, premium productions, or unique storytelling that isn’t available for free,” Das pointed out.

    MX bets big on AVoD
    According to estimates by media consulting firm Ormax, the latest season of Aashram garnered viewerships of 9.6 million in its opening week, rising to 10.1 million in the second week before slipping to 8.1 million in the third week, yet consistently ranking number one on the list of top AVoD and SVoD (subscription video-on-demand) shows through March.

    Another Amazon MX show Hip Hop India Season Two debuted with a viewership of 4.3 million, right behind Aashram, last month.

    “Both AVoD and SVoD have distinct content offerings, which attract different types of audiences. For a free AVoD service, providing friction-free access to viewing is critical so that a large number of customers can easily browse and view shows,” Aruna Daryanani – director of Amazon MX Player, said. “In addition, we also need to ensure that the viewing experience continues to be best-in-class, despite fluctuations in mobile data availability and that data consumption is optimal.”

    As smartphones prices drop and with data in India already the cheapest in the world, there is still a significant opportunity for video consumption growth, Daryanani asserted, adding that both AVoD and SVoD can co-exist.

    Emphasizing Amazon MX Player’s commitment to AVoD content, Amogh Dusad, the company’s head of content, said that the platform recently announced its 100-plus show slate for 2025, which includes titles like Made in India: The Titan Story, starring Naseeruddin Shah and Jim Sarbh, Mitti featuring Ishwaq Singh, the second season of Hunter, an action and thriller series starring Suniel Shetty and Jackie Shroff, and Rise and Fall, a reality show with entrepreneur Ashneer Grover as the game – master.

    Hybrid model wins favour
    While there is no denying the high delta in terms of reach and views that AVoD content enjoys, there is enough logic in adopting a hybrid approach that continues to prioritize SVoD, according to some entertainment industry experts. While AVoD helps sampling, only SVoD can drive users to stay loyal to a platform.

    Charu Malhotra, co-founder and managing director, Primus Partners, a management consultancy firm, said the SVoD audience base experienced a decline, dropping from 153 million in 2023 to 150.6 million in 2024. This indicates stagnation in subscriber acquisition and retention. To counter this, SVoD platforms may need to innovate their content strategies, offer exclusive high-quality content and enhance user engagement to justify subscription costs.

    “Free content will always have a market in India, but most AVoD business models can’t achieve break-even on a standalone basis. AVoD needs to be integrated with commerce, customer acquisition, and so on, in order for a sustainable business,” Ashish Pherwani, M&E (media and entertainment) sector leader, EY India, said. LiveMint

  • Render Networks & HyperFiber join to expedite fiber installations

    Render Networks & HyperFiber join to expedite fiber installations

    Fiber provider HyperFiber has selected Render Networks to support the automation and scaling of its network in expanding markets, including Colorado and Florida.

    The partnership comes as HyperFiber ramps up national expansion efforts and looks to improve efficiency in field operations and project management. The company reports that Render’s deployment management platform will be used to improve field-to-office coordination and automate construction workflows.

    Matt Myers, SVP of Construction at HyperFiber, reported that integrated automation, data visibility, and operational coordination are necessary for efficient fiber deployments.

    “Render empowers our teams to catch billing discrepancies early and ensure field data integrity, minimizing rework and optimizing field operations for scalable, accelerated network builds,” said Myers in a press release. “The result is faster deployment, stronger growth, and better service for our communities.”

    Render Networks CEO Stephen Rose said that HyperFiber is working to close the digital divide.

    “They’re reimagining how networks are built with real-time data and AI-powered automation from Render to deliver high-speed, reliable broadband to communities faster than ever before,” said Rose in the same press release. Lightwave Online

  • Indian authorities are urged by Starlink to expedite license approval

    Indian authorities are urged by Starlink to expedite license approval

    Elon Musk’s SpaceX-owned satellite internet services provider Starlink has urged the Indian government to expedite the approval of its licence application to begin operations in the country, people in the know said.

    The company’s top officials made the request in a recent meeting with the Union commerce and industry minister Piyush Goyal. Besides seeking a faster nod to its application, the company discussed its plans to expand operations in the country.

    “Met a delegation from Starlink, comprising of Vice President Chad Gibbs & Senior Director, Ryan Goodnight. Discussions covered Starlink’s cutting-edge technology platform, their existing partnerships & future investment plans in India,” Goyal said in a post on X on Wednesday.

    Queries emailed to Starlink and the commerce ministry did not elicit any response till press time.

    Security review still underway
    “The government is still examining Starlink’s application from a security point of view. The company will be able to invest in the country only after approval,” a government official said on the condition of anonymity.

    The company’s investments will go largely in setting up earth station gateways in the country. Satellite earth station gateways are ground-based facilities that serve as a vital link between satellites and local networks, and core to internet connectivity.

    “As per the plans shared, Starlink is currently looking at setting up three earth station gateways,” another official said.

    Starlink had submitted its application to the department of telecommunications (DoT) to get Global Mobile Personal Communication by Satellite (GMPCS) licence in 2022. The licence is a key requirement to offer satellite-based communication services in the country.

    Besides the licence, the company would also require approval from Indian National Space Promotion and Authorisation Centre (IN-SPACe) on its constellation of satellites and the capacity it will create to provide services in the country.

    According to government officials, Starlink has accepted key norms to get a licence for launching satellite broadband services in the country. These include the security and data storage requirements mandated by the government. However, the government still wants to be sure from a national security perspective before approving the company’s application, the official said.

    Data rules, spectrum pricing key
    These guidelines require the company to store all user data within the country and ensure it can facilitate data interception by intelligence agencies when needed. This is a prerequisite for obtaining any licences under the DoT.

    The Telecom Regulatory Authority of India (Trai) is also in the process of finalising its recommendations on the pricing of spectrum for satellite services and other terms including the tenure of licence, spectrum usage charges, etc.

    Rural opportunity
    According to analysts, once Starlink’s application in the country is approved, it would bring fast and reliable internet to the underserved regions. Further, the company would also serve the urban areas with its satellite internet services.

    “40% of India population do not have internet access with rural areas making the majority of these cases. This represents a large market opportunity for customer base in rural areas (for Starlink),” analysts at Bernstein, a brokerage, said in a note dated 4 March.

    However, the analysts added that “factors such as affordability, competition from established terrestrial providers (like Reliance Jio and Bharti Airtel), and pricing sensitivity mean that only a fraction of these people are likely to subscribe.”

    Pricing gap with local providers
    According to estimates by Bernstein, Starlink’s pricing in India is seen significantly higher—around 10 to 14 times more—than that of the country’s leading broadband providers. For a connection offering speeds between 50 and 200 Mbps, users would need to pay an upfront fee of ₹52,242, with a monthly subscription of ₹10,469. When taxes and other charges are included, the total annual cost comes to approximately ₹2.16 lakh for Starlink.

    In comparison, similar-speed fibre broadband plans from Airtel and Jio are available for just ₹11,000 to ₹15,000 per year, Bernstein said.

    Currently, Jio Platforms and Bharti Enterprises-led Eutelsat OneWeb have obtained the necessary approvals to provide satellite broadband internet in the country.

    Last month, Bharti Airtel and Reliance Jio—India’s two largest telecom service providers—entered into a pact with SpaceX to offer Starlink’s broadband internet services to its customers in India.

    The telecom operators, which once opposed the entry of such players to avoid competition, will explore offering Starlink equipment in their retail stores, services to business customers, opportunities to connect communities, schools, and health centres.

    Starlink operates the world’s largest satellite constellation, with over 6,750 satellites currently in orbit, serving millions of active customers around the globe with high-speed, low-latency internet, according to the details available on its website. LiveMint

  • China will use AI in its attempt to modernize education

    China will use AI in its attempt to modernize education

    China will integrate artificial intelligence (AI) applications into teaching efforts, textbooks and the school curriculum as it moves to overhaul education, authorities said in an official paper released on Wednesday.

    The move targeting pupils and educators across primary, secondary and higher levels comes as the world’s second-largest economy looks to boost innovation and find new sources of growth.

    Promoting artificial intelligence would help “cultivate the basic abilities of teachers and students,” and shape the “core competitiveness of innovative talents,” the education ministry said.

    For students, such basic abilities range from independent thinking and problem-solving to communication and cooperation, it said in a statement on its website.

    Use of artificial intelligence would also lead to more innovative and challenging classrooms, it added.

    The effort comes after Chinese universities launched AI courses and widened enrolment after the DeepSeek startup drew global attention in January with the launch of a competitive large-language model cheaper to develop than U.S. peers.

    That month China also unveiled its first national action plan to attain a “strong-education nation” by 2035, aiming to harness innovation efficiencies in reaching the goal. Reuters

  • HHS is to lose USD 40 billion during the Trump admin

    HHS is to lose USD 40 billion during the Trump admin

    The administration of US President Donald Trump is looking to cut some $40 billion in funding from its Department of Health and Human Services, the Washington Post reported on Wednesday, citing a preliminary budget document it had obtained.

    This cut would represent roughly one third cut of the health department’s discretionary spending, it said. Reuters

  • Telangana will use a new medical plan to enhance public hospitals

    Telangana will use a new medical plan to enhance public hospitals

    The Telangana government is working to improve government hospitals and make them more attractive like private hospitals. Many people don’t trust public hospitals because they feel they won’t get proper help or answers to their questions. To change this opinion and improve healthcare, a new policy is being prepared.

    As part of this plan:

    • Hospitals will be painted in bright colors and look neat like private hospitals.
    • A reception and helpdesk with staff in uniform will be set up to guide patients.
    • Children’s wards will have toys and fun pictures.
    • Hospitals will have good lighting and clean facilities.

    The government is also focusing on:

    • Better care for the elderly (geriatrics).
    • Special services like trauma care, cancer care, and palliative care.
    • Controlling chronic diseases through NCD clinics in every district.
    • Using artificial intelligence (AI) to speed up services in hospitals.
    • A plan to get a ₹4,150 crore loan from the World Bank to support these changes.

    Minister Damodar Rajanarasimha is leading this effort to brand and improve government hospitals across the state. The Hans India

  • Broadband market impact of tariffs, Dell’Oro

    Broadband market impact of tariffs, Dell’Oro

    Recent shifts inUS trade policy, including the implementation and adjustment of tariffs, have introduced uncertainty into global markets. Temporary rollbacks and exceptions—such as reduced rates and product-specific carve-outs—have added to the complexity, particularly in response to market reactions.

    As of now, the effective average tariff rate on US imports is estimated at 27%, the highest level since the early 20th century, reflecting broader efforts to recalibrate trade dynamics. Accordingly, a key question from clients remains: how will changing tariff policies affect broadband deployments and the demand for related equipment?

    Given the frequent adjustments to trade policy—including recent exemptions for smartphones, consumer electronics, and certain GPUs—it remains challenging to forecast the full extent of the impact on broadband infrastructure in the near term.

    What follows are our best estimates as to the impact tariffs will have this year and beyond on the broadband market:

    In the US, tariffs will have minimal impact on most fiber broadband equipment pricing and deployments
    Key fiber broadband equipment providers in the US have already moved most of their assembly and manufacturing to the US in order to adhere to the BABA (Build America, Buy America) waiver of the NTIA’s BEAD (Broadband Equity, Access, and Deployment) program. Though not all of the products being deployed in broadband access networks have been onshored, the most commonly deployed components—PON OLTs, ONTs, cabinets, and fiber-optic cable—have already been self-certified by the respective vendors and have already seen substantial increases in domestic manufacturing.

    Beyond BABA, some major operators have multi-year purchase agreements in place for fiber-optic cabling and connectors that should protect them from any impact of tariffs on the import of silica and other raw materials used in the manufacture of fiber cables. For example, in 2024, AT&T signed a $1 billion multi-year agreement with Corning to ensure a stable supply of fiber cable and connectivity solutions. Originally intended to safeguard against supply shortages, this move now also serves to mitigate the risk of rising component costs.

    Unlike FTTH, cable outside plant upgrades in support of DOCSIS 4.0 are likely to be impacted
    Commscope, which manufactures amplifiers and outer outside plant components in Mexico, and Teleste, which manufactures amplifiers in Finland, will both be impacted by tariffs at any level. We suspect that these manufacturers are either looking to relocate these facilities or manufacturing to the US or are seeking waivers in order to satisfy growing demand from Comcast, Charter, Cox, and others. The relocation of manufacturing is no trivial task and will introduce shipment delays beyond the inventory both already have in their warehouses. The time it takes to move manufacturing is a primary argument for the more gradual introduction of tariffs as opposed to introduction and implementation on the same day.

    Additionally, Vecima Networks, which is delivering GAP (Generic Access Platform) nodes to US operators, has already signaled that tariffs will also be materially significant at any level. The net result for cable operators pursuing DOCSIS 4.0 is additional deployment delays as well as increased equipment prices.

    Residential Wi-Fi routers will feel an impact
    Just as Wi-Fi vendors are looking to ride the wave of Wi-Fi 7 penetration into more homes and businesses, tariffs at any level will easily increase the retail cost of even the most popular Wi-Fi brands by anywhere from 5 to 15%. China, Taiwan, and Vietnam are the manufacturing sources for the vast majority of these devices and, although these devices have been exempted from the tariffs as of Friday night, the likelihood of those full exemptions remaining is very slim, in our opinion.

    Indirect impacts of tariffs and forecast adjustments
    The challenge for all industries now is that they simply cannot unsee what has already happened. The state of economic recovery in many countries and industries was already fragile after dealing with the supply shock of the COVID-19 pandemic, which introduced accelerated levels of inflation that were only exacerbated by government policies designed to stimulate economies. Those macroeconomic challenges were felt acutely in telecom equipment purchasing as service providers overbought capacity in 2022 and early 2023 and then had to focus on drawing down those inventories, putting pressure on their equipment vendors to sustain themselves during the spending slowdown. Just as these businesses are set to rebound and return to more normalized and consistent purchasing levels, tariffs are introduced, making the road to recovery cloudier.

    In our January 2025 forecast, we had already reduced our expectations for North American broadband equipment spending from our July 2024 forecasts. These adjustments accounted for moderate tariff increase of 15-30% for imported electronics, semiconductors, and other components from China. However, the broader scope of tariffs, which now includes countries like Vietnam and India, exceeds our initial expectations.

    However, the tariffs and their resulting costs passed on to end customers actually play only a small role in the forecast changes. The expectation that the BEAD program would come under review and delay the initiation of select fiber projects also played a role in our forecast reductions. Though we were expecting a very limited amount of BEAD funds to actually flow through to broadband equipment providers in 2025, we did expect to see some in the fourth quarter. Now, we highly doubt any money will be spent on OLTs or ONTs this year, instead pushing the spend well into 2026.

    The bigger concern we had going into 2025 was the uncertainty among consumers and businesses alike about what impact the new administration’s policies would have on overall spending and investment patterns. After two years of steady inflation and higher interest rates, US consumer confidence was already trending downward. Consumer debt levels were rising and stubbornly high mortgage rates limited the number of new homes being purchased, as well as overall refinancing. With consumer spending in the US typically 68% of GDP, any further decline in confidence could result in consumers pulling back from spending.

    And that is where the maelstrom around tariffs this past week has left consumers very concerned about what the immediate future holds for them. That uncertainty is likely to result in consumers either maintaining their current spend on broadband services or downgrading those services to save some money each month. The combination of consumers managing their communications budgets more tightly, fewer new home purchases, and less moves all means it will be incredibly difficult for broadband providers to continue to grow residential ARPU.

    Lack of ARPU growth could result in some delays in planned upgrades from GPON to XGS-PON or from DOCSIS 3.1 to DOCSIS 4.0, for example. But it won’t stop the continued buildout of fiber networks in both greenfield and overbuild scenarios, because those are long-term investments with decades-long returns. Even if the cost to pass and connect homes increases due to tariff-induced price increases, the fiber strategies of major operators including AT&T, Frontier, Lumen, and others aren’t going to change.

    Broadband and mobile bundling will undoubtedly accelerate this year as telco and cable operators try to lock in subscribers early with aggressive pricing and incentives on mobile services. Those moves will eat into ARPU growth, as well. But service providers will forgo some margins in the short-term in order to expand their subscriber base when the market volatility subsides. Dell’Oro

  • Netflix wants its revenue to treble to $39 billion by 2030

    Netflix wants its revenue to treble to $39 billion by 2030

    Netflix has set out its ambition to double its revenue to $39bn (£29.4bn) in the next five years and grow the number of subscribers by 35%.

    Executives at the streaming giant were “optimistic” in revealing growth goals for 2030 with senior staff at an annual business review meeting last month, according to a report in the Wall Street Journal (WSJ).

    Besides the ambitious revenue target, senior leaders said the aim was to triple Netflix’s operating income of $10bn (£7.6bn), according to people who attended the meeting.

    Additionally, the execs set out a push to grow the number of subscribers around the world from just over 300m last year to 410m in 2030, after Q4 2024 which brought in a record 18.9m subscribers internationally. The focus will be on growing the subscription base outside of the crowded US market, the WSJ reported, in territories with high broadband penetration including India and Brazil.

    They also disclosed the ambition to earn about $9bn (£6.8bn) in global ad sales. While Netflix does not disclose its ad revenue, estimates suggest US ad revenues at the streamer will top $2.2bn (£1.6bn) in 2025.

    The launch of an ad-supported tier in 2022 – as well as moves to raise prices and limit password sharing – has helped the streamer cement its market capitalisation of almost $400bn (£302bn). It now aims to more than double its value to $1tn (£755bn) by 2030, according to the report.

    The meeting took place in March, before President Trump revealed plans to introduce tariffs which wiped off trillions of dollars of value on the global stock market. The WSJ warned that further market volatility could complicate the streamer’s growth ambitions, with the ad-market particularly vulnerable.

    But, it also pointed out, streaming could be less affected as people choose to stay home and watch TV in a bid to save money. Broadcast Now

  • South Korea intends to give the chip industry a further US$4.9B

    South Korea intends to give the chip industry a further US$4.9B

    South Korea yesterday announced plans to invest almost US$5 billion extra in the country’s semiconductor industry, citing “growing uncertainty” over US tariffs.

    The country is a major exporter to the US and its powerhouse chip and auto industries would suffer a hefty hit from US President Donald Trump’s threatened 25 percent levies.

    Concerns about the sector have hammered the Seoul-listed shares of the world’s largest memory chip maker Samsung, and largest memory chip supplier SK Hynix.

    Officials have now stepped up to provide more cover for the economically crucial industry by announcing that an extra US$4.9 billion would be pumped into it through next year.

    “An aggressive fiscal investment plan has been devised to help local firms navigate mounting challenges in the global semiconductor race,” the South Korean Ministry of Finance said in a press release.

    It warned that “growing uncertainty” following rounds of US tariff threats had left the sector clamoring for government support.

    “To foster a dynamic, private sector-led ecosystem for semiconductor innovation and growth, the government will increase its investment in the sector from 26 trillion won (US$18.2 billion) to 33 trillion won,” the ministry said.

    Trump announced on his April 2 “Liberation Day” sweeping tariffs on its global trading partners, including the 25 percent on South Korean goods, before backtracking and suspending their implementation for 90 days.

    Even so, “duties targeting specific sectors such as semiconductors and pharmaceuticals, remain on the horizon,” South Korean Minister of Finance Choi Sang-mok said during a meeting.

    “This grace period offers a crucial window to strengthen the competitiveness of South Korean companies amid intensifying global trade tensions,” he added.

    “The government plans to expand support for the semiconductor industry, allocating 33 trillion won, with over 4 trillion won in fiscal spending set to be injected through 2026,” he said.

    The package includes funding for infrastructure development, including underground transmission lines at semiconductor clusters that are currently being built.

    “The government will boldly support investment by semiconductor companies,” Choi said, adding that the package included securing talent for the industry.

    The investment is part of a large revised supplementary budget proposal of 12 trillion won and requires the approval of the National Assembly.

    The tariffs announcement has rocked global markets, with investors uncertain over whether they are a negotiating tactic or permanent US position.

    Trump has insisted he would not back down until he has reduced or even wiped out US trade deficits — while simultaneously signalling that he is ready to negotiate.

    The US trade deficit with South Korea was US$66 billion in goods last year.

    Seoul last week unveiled a US$2 billion emergency support package to help automakers weather the storm.

    Still, analysts said that for now, South Korea should not be too worried about its chip sector. “Unlike automobiles, which are already subject to tariffs, semiconductors are unique in that the United States lacks viable substitutes,” Sejong University professor Kim Dae-jong said.

    “Our companies are building large-scale semiconductor plants in the US, contributing to local job creation, a point that will likely be emphasized,” Kim added. “Behind-the-scenes negotiations will likely continue, and there is a chance they could conclude on a positive note. There also remains the possibility that tariffs will be adjusted item by item in the future.” AFP