Trumps 100% chip tariff plan unlikely to hit Samsung, SK hynix: Report

Seoul [South Korea],: South Korea’s best chipslers, US President Donald Trump, can escape the brunt, which is offered 100 percent tariff for imported semiconductors, the US Trade Secretary Howard Lutnick announced that companies that invest in US production facilities will be exempt.

In a fox business interview reported by Korean Herald Herald, Lutnick said, “So if you commit to building in the United States during the period and your filing to the Trade Department and the auditor supervises the building along the whole way, then you will allow you to import your chips while building it without a tariff.” “But in the United States, the building should be approved and controlled.”

Under this statement, Samsung and SK Hynix seem well positioned. Samsung is already running a semiconductor in Austin, Texas and building a 17 billion dollars of fabrication facilities planned to be opened in 2026 in Texas, Taylor. SK Hynix is expected in 2028 for the advanced chipset facility in the USA.

The fact that Trump announced that he had applied 100 percent tariffs to all imported chips unless it was made in the United States left Korean firms uncertain about details and potential spreading. However, it has left a significant detail that tariff exemptions would be applied only to the chips produced in US facilities or cover the chips produced in other countries by the same company. Lutnick’s words alleviated the concerns in Seoul.

Based on the current information, the increasing emotion between the analysts is that Samsung Electronics and SK Hynix will probably be exempt from 100% tariff.

Lutnick stressed that the aim was to “make semiconductor production here” and ensure that basic technologies are controlled within the US borders. The authority estimated that the attempt could produce 1 trillion US dollars for investments in semiconductor in the country.

The Commercial Department conducts the investigation of Chapter 232 in accordance with the Trade Expansion Law in order to evaluate the national security results of chip imports. After the review is completed, more information is expected about the scope and application of tariffs.

This article was created from an automatic news agency feeding without changing the text.