Samsung, SK hynix likely to avoid Trump's proposed 100% chip tariffs

South Korea’s leading semiconductor makers may escape the impact of US President Donald Trump’s proposed 100% tariffs on imported chips, following clarification from US Commerce Secretary Howard Lutnick.

Speaking to Fox Business, Lutnick explained that companies building semiconductor plants in the US during Trump’s term — and officially registering their projects with the Commerce Department — would be exempt from the tariff while construction is underway. “If you commit to build in America and your auditor confirms the process all the way through, you can import chips without a tariff while you are building,” he said.

This exemption appears to cover both Samsung Electronics and SK hynix. Samsung already runs a semiconductor foundry in Austin, Texas, and is investing $17 billion in a new fabrication plant in Taylor, Texas, set to open in 2026. SK hynix has committed $3.87 billion to a high-tech chip packaging facility in the US, with mass production targeted for 2028.

Trump’s initial announcement — vowing a blanket 100% tariff on all foreign-made chips unless they were produced domestically — had raised concerns among Korean firms about the scope of the measure. A key uncertainty remains: whether the tariff relief would extend to chips produced by the same companies in overseas plants. Lutnick’s comments, however, have eased market worries in Seoul.

Lutnick emphasized that the administration’s goal is to boost domestic semiconductor production and safeguard critical technologies within US borders. He estimated the initiative could trigger up to $1 trillion in semiconductor-related investment.

The US Commerce Department is still conducting a Section 232 investigation under the Trade Expansion Act to assess the national security risks of chip imports. More details on the tariff’s application are expected once the review is complete.