These chip companies are exempt from tariffs?

Samsung and SK Hynix may be exempted from tax

Regarding Trump's tariff threat, South Korean experts say Samsung and SK Hynix are likely to avoid high tariffs, given that the US, which relies heavily on imported advanced semiconductors, lacks sufficient domestic memory chip production lines, and Trump has stated that companies building factories in the US will be exempted.

Experts warn that a 100% tariff on semiconductors would severely damage the US electronics and IT industries, which rely on advanced chips from Asia, particularly Taiwan and South Korea. They believe Trump's move is intended to pressure global chipmakers already invested in the US, such as Samsung, SK Hynix, and TSMC, to increase domestic production.

"We're going to put very high tariffs on chips," Trump said at a White House event on August 6, but added that companies like Apple that own or will build factories in the United States would be exempt. He did not specify the investment required to qualify.

If the tariffs take effect, Samsung and SK Hynix could be affected, as American tech companies are their primary customers. SK Hynix reports that approximately 63% of its sales come from the United States, and Samsung's semiconductor division also generates over half of its revenue from the US.

South Korean experts say imposing a 100% tariff on major chipmakers is unrealistic and likely intended to force companies to increase their investment in the United States. Lee Jong-hwan, a professor at Sangmyung University, said, "Even Micron, the largest memory chipmaker in the United States, conducts most of its production in Singapore and Taiwan. The United States lacks the infrastructure to produce advanced chips domestically." He added that such high tariffs would severely harm the US electronics and IT industries and would likely target companies that have not yet invested in the United States—unlike Samsung, SK Hynix, and TSMC, which have already done so.

South Korea recently received most-favored-nation status in trade negotiations, which experts say means South Korean chipmakers will be exempt from high tariffs. South Korean Minister of Trade, Industry, and Energy Yeo Han-koo stated on August 7 that South Korea would not face higher tariffs than other countries. "If the maximum tariff is set at 15%, we will pay that amount. Whether it's 100% or 200%, we will receive fair treatment," he said.

SIA Statement on Tariffs

The Semiconductor Industry Association (SIA) today released the following statement from President and CEO John Neuffer regarding President Trump’s announced semiconductor tariff policy. The semiconductor industry is investing $630 billion across 28 U.S. states to strengthen our economic and national security and advance the President’s goal of revitalizing American semiconductor manufacturing. To sustain these investments, the United States must be a cost-competitive base for chip development and production.

We are eager to learn more about the President’s semiconductor tariff plan, including the scope and structure of exemptions for companies manufacturing in the U.S. Trade is essential to American semiconductor leadership. Therefore, we hope that tariff exemptions and future trade agreements will ensure the U.S. semiconductor industry remains at the forefront of competing for the world’s most advanced technologies.

“We look forward to working with the administration to develop global trade initiatives that ensure the United States maintains its leadership in semiconductors for many years to come.”