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South Korea’s President Lee Vows Regulatory Easing and Tariff Talks to Support Trade

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South Korean President Lee Jae-myung pledged on Friday that his administration would ease regulations and accelerate working-level tariff negotiations with Washington, as part of a broader effort to support South Korean businesses facing international trade challenges.

Speaking at a meeting with leaders of the country’s top conglomerates, President Lee emphasized that his government would work to minimize the difficulties companies encounter in global competition and help them expand their economic footprint. The gathering included prominent figures such as Samsung Electronics Chairman Jay Y. Lee and Hyundai Motor Group Executive Chair Euisun Chung.

“Our companies are struggling with international competition,” Lee told the business leaders, adding that his administration would adopt a “pragmatic, flexible” trade policy focused on national interests. His spokesperson, Kang Yu-jung, confirmed that Lee intends to expedite discussions on tariffs with Washington.

Since his election on June 3, Lee — a liberal who campaigned on a business-friendly platform — has prioritized economic issues, especially in light of South Korea’s export-driven economy. Key sectors such as semiconductors, automobiles, and shipbuilding are heavily reliant on global trade, making ongoing negotiations with the United States especially critical.

During the meeting, Lee invited executives to provide input on trade challenges. SK Group Chairman Chey Tae-won, who also heads the Korea Chamber of Commerce, voiced concerns about the uncertainty surrounding U.S. tariffs, which complicates corporate decision-making. Samsung’s Lee expressed hope that close cooperation between the government and private sector would help South Korea navigate what he described as a “multi-dimensional crisis.”

The U.S.-South Korea alliance also remains a focal point. On the same day, Seoul’s deputy minister for economic affairs Kim Hee-sang met with Sean O’Neill, a senior U.S. State Department official, to reaffirm bilateral cooperation. O’Neill emphasized opportunities to deepen collaboration in shipbuilding, economic security, and mutual investment.

The tariff negotiations come after President Lee and U.S. President Donald Trump agreed last week to work toward a swift deal during their first phone call since Lee assumed office.

Meanwhile, South Korea’s industry ministry announced plans to evaluate the impact of U.S. tariffs on domestic manufacturers, particularly in the home appliance sector, and to prepare targeted support measures.

Broadcom Shares Slip as Revenue Forecast Underwhelms AI-Driven Expectations

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Broadcom shares declined over 3% in early trading on Friday after its third-quarter revenue forecast failed to meet the high expectations of investors who have been heavily bullish on chip stocks amid the ongoing artificial intelligence surge.

The Palo Alto-based semiconductor giant projected third-quarter revenue of approximately $15.80 billion, slightly above the analysts’ consensus estimate of $15.71 billion, according to LSEG data. However, analysts noted that expectations for Broadcom had already been elevated due to its critical role in AI infrastructure.

“High expectations drove a bit of downside,” said Bernstein analyst Stacy Rasgon, reflecting the sentiment that even marginally positive forecasts may not be enough in the current AI-fueled market climate.

Broadcom provides semiconductors to major clients like Apple and Samsung and supplies advanced networking hardware essential for AI data centers, where massive data transfers are required to power generative AI models. In addition to its networking chips, Broadcom also designs custom AI processors for large cloud providers, offering an alternative to Nvidia’s expensive off-the-shelf chips.

Despite its position in the AI supply chain, Broadcom remains exposed to global trade uncertainties, particularly around U.S. export restrictions aimed at limiting China’s access to advanced technology. “AVGO is ramping two additional customers, but they are still small. So the processor business will grow this year, but at a measured rate,” Morgan Stanley commented.

Rival Marvell Technology, meanwhile, offered a more optimistic outlook last week, forecasting stronger-than-expected second-quarter revenue driven by growing demand for custom chips supporting AI workloads in data centers.

Broadcom briefly crossed the $1 trillion market cap threshold in December, reflecting investor optimism about AI-related chip demand. Its shares have climbed roughly 12% year-to-date. However, its current valuation — with a 12-month forward price-to-earnings ratio of 35.36 — remains significantly higher than Marvell’s 20.63, according to LSEG data.

Trump Administration Renegotiates Biden-Era Chips Act Grants, Says Commerce Secretary Lutnick

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The Trump administration is actively renegotiating semiconductor manufacturing grants originally awarded under the Biden-era CHIPS and Science Act, according to U.S. Commerce Secretary Howard Lutnick. Speaking before the Senate Appropriations Committee on Wednesday, Lutnick indicated that some of these awards may be significantly altered or even cancelled as part of efforts to secure better terms for U.S. taxpayers.

“Some of the Biden-era grants just seemed overly generous, and we’ve been able to renegotiate them,” Lutnick told lawmakers, emphasizing that the renegotiations aim to deliver greater value to the American public. “All the deals are getting better, and the only deals that are not getting done are deals that should have never been done in the first place.”

$52.7 Billion CHIPS Act Under Review

The $52.7 billion CHIPS and Science Act, signed by President Biden in 2022, was designed to bolster domestic semiconductor manufacturing and reduce reliance on Asia, particularly Taiwan and South Korea. Under the program, billions of dollars in grants were awarded to both U.S. and foreign chipmakers, including Taiwan’s TSMC, South Korea’s Samsung and SK Hynix, as well as U.S.-based Intel and Micron.

Though many of these awards were signed before Biden left office, most of the funds have yet to be fully disbursed. The grant payments are generally structured to be released as companies meet specific production and investment milestones tied to their U.S. plant expansions.

TSMC Award Revised Amid Expanding U.S. Investment

Lutnick cited Taiwan Semiconductor Manufacturing Co. (TSMC) as an example of successful renegotiation. Under the original agreement, TSMC was awarded $6 billion to support its U.S. manufacturing expansion. Lutnick revealed that TSMC subsequently increased its planned investment from $65 billion to $165 billion, while still receiving the same $6 billion in federal funds.

Although TSMC confirmed in March that it would invest an additional $100 billion in the U.S., the company has not commented on whether the new investment was directly tied to renegotiated CHIPS Act terms.

White House Seeking Delays and New Terms

The renegotiation efforts are not new. In February, Reuters reported that the White House was already seeking to renegotiate several awards and delay some upcoming disbursements to ensure better returns on government spending.

Lutnick’s comments suggest that the Trump administration intends to continue scrutinizing past agreements to maximize taxpayer value and may block deals it deems wasteful or excessive.

AI Computing Capacity Also a Focus

During the hearing, Lutnick also addressed concerns about the global race for artificial intelligence computing capacity. He emphasized the administration’s commitment to ensuring that over 50% of global AI compute power remains based in the United States. This statement comes amid criticism of a Trump administration deal allowing the United Arab Emirates to purchase advanced American AI chips, raising fears about exporting critical technology.