U.S. President Donald Trump has announced a plan to impose a tariff of nearly 100% on all imports containing semiconductors, raising concerns for South Korean semiconductor corporations Samsung Electronics and SK hynix. This is largely because Samsung Electronics and SK hynix supply memory semiconductors in large volumes to U.S. big tech corporations' smartphones and artificial intelligence (AI) chips and servers.
However, considering that the U.S. relies heavily on importing advanced semiconductors, and the fact that there is a lack of semiconductor production lines capable of supplying memory semiconductors locally, along with Trump's statement that "companies constructing production facilities in the U.S. will be exempt," there are predictions that Samsung Electronics and SK hynix may avoid the tariff burden.
In particular, experts analyze that if the U.S. imposes a 100% tariff on semiconductors, it would deliver a devastating blow to its own electronics and IT industries, which largely depend on Taiwan, South Korea, and other Asian regions for advanced semiconductors. Therefore, Trump's remarks are seen as a measure to encourage investments from other global semiconductor corporations in the U.S., using Samsung Electronics, SK hynix, and TSMC, which have made large-scale investments, as examples.
On the 6th (local time), President Trump stated at an event in the White House to announce Apple's $100 billion investment plan that "we will impose very high tariffs on semiconductors and chips," adding, "But for companies like Apple that have established production bases in the U.S. or have clearly promised to produce in the U.S., no expense will be incurred." However, Trump did not specify what level of investment companies would need to make in the U.S. to receive tariff exemptions.
If Trump's statements materialize, Samsung Electronics and SK hynix, which list U.S. big tech corporations as their main clients, will inevitably be affected. The memory semiconductors of Samsung Electronics and SK hynix are incorporated into AI semiconductors and servers, smartphones, and IT devices of U.S. big tech corporations. According to SK hynix's business report, about 63% of the company's revenue last year came from the U.S. Samsung Electronics' semiconductor division (DS) is also estimated to be over 50%.
Domestic experts pointed out that it is unrealistic for the Trump administration to impose a 100% tariff on major semiconductor corporations. It is interpreted as a strong statement aimed at attracting domestic semiconductor investments. Lee Jong-hwan, a professor of system semiconductor engineering at Sangmyung University, stated, "Even Micron, the largest memory corporation in the U.S., has its largest production bases in Singapore and Taiwan, and the infrastructure to produce advanced semiconductors within the country is severely lacking," adding, "A 100% tariff would essentially deliver a catastrophic blow to the country's electronics and IT industries, so this should be viewed as a message aimed at promoting U.S. investments from other semiconductor manufacturers aside from Samsung, SK hynix, and TSMC, which have made investments in the U.S."
Additionally, as Korea is set to receive most-favored-nation treatment following the conclusion of tariff negotiations, it is anticipated that domestic semiconductor corporations will be exempt from the tariffs. Yeo Han-koo, the head of the trade negotiations division at the Ministry of Trade, Industry and Energy, appeared on SBS Radio's "Kim Tae-hyun's Political Show" on the 7th, discussing Trump's remarks, saying, "We have reached an agreement on (tariffs) this time, and for future tariffs, especially regarding semiconductors and bio sectors, we decided to receive most-favored-nation treatment," and added, "In other words, we ensured that it wouldn't be less favorable than what we provide to other countries, so if the highest rate is set at 15%, we will also receive 15%. It doesn't matter if it's 100% or 200%."
Meanwhile, Apple announced additional investments of $100 billion to expand production in the U.S. Apple has already unveiled a $500 billion investment plan in the U.S., and this additional investment includes partnerships with major domestic component suppliers such as Corning, Applied Materials, and Texas Instruments (TI).