US Tariff Relief: A Silver Lining for South Korean Chipmakers

South Korean chip giants Samsung and SK hynix are poised to sidestep imminent US tariffs on imported semiconductors due to their investment commitments in American facilities. US Commerce Secretary Howard Lutnick confirmed that chips imported during the construction of US plants will face no tariffs, a move that clarifies President Donald Trump's previous announcement of a 100% tariff on foreign-made semiconductors.

Samsung's ongoing project in Taylor, Texas, and SK hynix's $3.87 billion investment in a US chip packaging plant illustrate their commitment to US manufacturing. Initially, Trump's tariff announcement had cast uncertainty over South Korean firms, but subsequent clarifications signal potential tariff exemptions for these companies.

The initiative aims to catalyze $1 trillion in semiconductor investments within the US, ensuring crucial technologies remain domestically controlled. A Section 232 investigation by the Commerce Department is underway to evaluate the national security risks of chip imports, with more detailed tariff guidelines anticipated post-investigation. This policy shift has alleviated concerns in Seoul.

(With inputs from agencies.)