The Trump administration in the United States has fleshed out its plan to impose semiconductor tariffs on Taiwan. Accordingly, the Korean government also plans to begin consultations with the United States to receive preferential semiconductor tariffs.
An official at the Ministry of Trade, Industry and Resources said on the 16th, "As negotiations between the United States and Taiwan have been finalized, the details related to semiconductor tariffs have become clearer." The official added, "After confirming the specific terms of the two countries' negotiations, we will discuss with the semiconductor industry and begin additional consultations with the United States."
The Korean and U.S. governments included relevant principles in the joint factsheet for the Korea-U.S. summit released in November last year. It states that "semiconductor tariffs less favorable than those for other countries will not be applied" to Korea. As a result, attention is on whether Korea, a major semiconductor exporter, can be subject to the same criteria as Taiwan.
U.S. President Donald Trump signed a semiconductor-related proclamation on the 14th (local time). It imposes a 25% tariff on semiconductors manufactured abroad and imported into the United States and then re-exported, related manufacturing equipment, and derivative products.
The United States and Taiwan concluded trade talks on the 15th, the following day. The key is to lower Taiwan's reciprocal tariff rate with the United States to 15%. Taiwanese corporations and the government agreed to provide $250 billion in direct investment and credit guarantees, respectively, to the United States.
The United States proposed a condition that it would partially exempt tariffs for Taiwanese corporations that establish new semiconductor production facilities. During the construction period, tariffs will be exempted up to 2.5 times production capacity. For import volumes exceeding that, a preferential tariff rate will apply.
Different conditions were applied to Taiwanese corporations that have completed new semiconductor facilities. They will be allowed to import up to 1.5 times new production capacity without tariffs.
An official at the Ministry of Trade, Industry and Resources said, "Looking at the terms of the negotiations with Taiwan, tariffs applied differ depending on whether the investment is complete and whether facilities are under investment," adding, "There will be no small number of items to check in the implementation phase of semiconductor tariffs."
Meanwhile, Samsung Electronics plans to invest a total of $37 billion in Taylor, Texas, by 2030. It will build two advanced foundry plants, an advanced packaging facility, and a research and development (R&D) center. SK hynix is also building an advanced packaging plant in Indiana.