The Trump administration has revived its push for targeted US semiconductor tariffs, pressuring South Korean chipmakers Samsung Electronics and SK Hynix to expand US production or face duties on foreign-made chips. While the companies have committed over $41 billion to US projects, including Samsung's $37 billion Texas complex and SK Hynix's $4 billion Indiana facility, unsettled details regarding what qualifies as domestic production and how embedded memory chips will be treated leave the effectiveness of their tariff relief uncertain.
US semiconductor tariff policy
- ▪The US government imposed a 25 percent duty on a narrow group of advanced chips in January 2026, but has not finalized a broader second phase covering more semiconductor imports.
- ▪US President Donald Trump's administration has revived its push for targeted semiconductor tariffs, pressuring Samsung Electronics and SK Hynix to expand US production or face duties on foreign-made chips.
- ▪US Commerce Secretary Howard Lutnick stated on September 2, 2026, that companies manufacturing semiconductors in the US will receive tariff relief, while those relying on foreign production will face duties.
- ▪Shin Won-kyu of the Korea Economic Research Institute stated that the US tariff push aims to accelerate US semiconductor investments and strengthen Washington's negotiating position ahead of a tentative September 24, 2026 summit between Donald Trump and Xi Jinping.
Korean chipmaker US investments
- ▪Samsung Electronics plans to invest more than $37 billion in Texas, which includes its Taylor foundry complex.
- ▪Samsung Electronics and SK Hynix have committed more than $41 billion to semiconductor projects in the United States.
- ▪South Korea and the United States are discussing a $350 billion investment package, consisting of $200 billion in strategic investments and $150 billion in shipbuilding cooperation.
- ▪SK Hynix is investing more than $4 billion in a high-bandwidth memory packaging and research facility in Indiana.
Production-linked tariff exemption criteria
- ▪US officials are considering country-specific tariffs, guidance for major chipmakers, and extending duties to chip-powered products like laptops, gaming consoles, and data-center servers.
- ▪US Commerce Secretary Howard Lutnick reportedly favors duty-free import quotas linked to companies' planned US semiconductor production.
- ▪Industry experts question whether the US government will count advanced packaging and research and development, such as SK Hynix's Indiana project, as domestic production for tariff exemptions.
- ▪The proposed US production-linked quota resembles a deal with Taiwan that permits duty-free imports of up to 2.5 times planned US capacity during construction and 1.5 times completed capacity afterward.
Embedded memory chip tariffs
- ▪South Korean memory chips often arrive in the United States inside consumer electronics assembled in Southeast Asia, raising questions about whether US tariffs will target components, finished goods, or both.
- ▪South Korean-made high-bandwidth memory is frequently shipped to TSMC in Taiwan to be packaged with Nvidia processors before being imported into the United States as finished AI accelerators or servers.
- ▪Much of the semiconductor output from Samsung Electronics and SK Hynix consists of memory chips that are integrated into other products before entering the United States.
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