INTERNATIONAL
South Korea says Samsung, SK Hynix will not be subject to 100% US chip tariffs
SK Hynix’s US investment may not meet full exemption criteria, leaving its tariff status uncertain under proposed US rules. - REUTERS
SEOUL: South Korea's top trade envoy Yeo Han-koo said on Thursday that Samsung Electronics and SK Hynix will not be subject to 100% U.S. tariffs on chips.
AI Brief
Yeo said on radio that among various countries, South Korea will face the most favourable U.S. tariff rates on chips under the trade deal between Washington and Seoul.
He did not elaborate.
U.S. President Donald Trump said on Wednesday the United States will impose a tariff of about 100% on semiconductors imported from countries not producing in the U.S. or planning to do so. But it would not apply to companies that had made a commitment to manufacture in the U.S. or were in the process of doing so.
Trump's comments were not a formal announcement and much remains unclear.
Samsung has invested in two chip fabrication plants in Austin and Taylor, Texas, while SK Hynix has announced plans to build an advanced chip packaging plant and research and development facility for artificial intelligence products in Indiana.
"While both Samsung and SK Hynix have made U.S. investments, there are doubts about whether SK Hynix's packaging plant alone would fully qualify for tariff exemptions," said Baik Gil-hyun, an analyst at Yuanta Securities.
"Samsung, on the other hand, appears to be benefiting not only from that but also from news that it has joined Apple’s supply chain."
Apple said on Wednesday that Samsung Electronics will supply chips from its production plant in Texas for Apple products including iPhones.
Shares in Samsung Electronics climbed 2.6% while shares in SK Hynix were trading up 0.6% in line with the broader market.
Both companies declined to comment on Trump's remarks.
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AI Brief
- Trump plans a 100% tariff on foreign-made chips unless companies produce or plan to produce in the US.
- Samsung is well-positioned for tariff exemptions thanks to its Texas chip plants and new partnership with Apple.
- SK Hynix's US investment may not fully qualify for exemptions, raising uncertainty about its tariff status.
Yeo said on radio that among various countries, South Korea will face the most favourable U.S. tariff rates on chips under the trade deal between Washington and Seoul.
He did not elaborate.
U.S. President Donald Trump said on Wednesday the United States will impose a tariff of about 100% on semiconductors imported from countries not producing in the U.S. or planning to do so. But it would not apply to companies that had made a commitment to manufacture in the U.S. or were in the process of doing so.
Trump's comments were not a formal announcement and much remains unclear.
Samsung has invested in two chip fabrication plants in Austin and Taylor, Texas, while SK Hynix has announced plans to build an advanced chip packaging plant and research and development facility for artificial intelligence products in Indiana.
"While both Samsung and SK Hynix have made U.S. investments, there are doubts about whether SK Hynix's packaging plant alone would fully qualify for tariff exemptions," said Baik Gil-hyun, an analyst at Yuanta Securities.
"Samsung, on the other hand, appears to be benefiting not only from that but also from news that it has joined Apple’s supply chain."
Apple said on Wednesday that Samsung Electronics will supply chips from its production plant in Texas for Apple products including iPhones.
Shares in Samsung Electronics climbed 2.6% while shares in SK Hynix were trading up 0.6% in line with the broader market.
Both companies declined to comment on Trump's remarks.