Samsung Electronics, SK hynix could avoid US chip tariffs under new Trump policy

From left to right Treasury Secretary Scott Bessent Commerce Secretary Howard Lutnick look on as President Donald Trump announce an additional 100 billion Apple investment in the US in the Oval Office of the White House in Washington DC Aug 6 2025 EPA-Yonhap — (From left to right) Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick look on as President Donald Trump announce an additional $100 billion Apple investment in the US in the Oval Office of the White House in Washington, D.C., Aug. 6, 2025. EPA-Yonhap

SEOUL, August 8 (AJP) - The Trump administration will waive newly announced semiconductor tariffs for companies that commit to building manufacturing facilities in the United States during President Donald Trump’s current term, the Commerce Secretary said on Thursday (local time), signaling a possible reprieve for major South Korean chipmakers including Samsung Electronics and SK hynix.

In an interview with Fox News, Secretary Howard Lutnick sought to clarify President Trump’s announcement a day earlier of a sweeping 100 percent tariff on imported semiconductors. The policy is intended to bolster domestic chip production amid growing concerns over supply chain vulnerabilities.

“What the president said is: if you commit to build in America during his term, and if you file it with the Commerce Department and your auditor oversees construction all the way through, then he will allow you to import your chips while you are building — without a tariff,” Lutnick said.

He stressed that companies must demonstrate verifiable progress on their U.S. construction projects in order to qualify.

“You have to be confirmed and overseen building in America,” he said. “Not just promised.”

The policy clarification comes after Trump’s Wednesday announcement at a White House event highlighting Apple’s new domestic investment plans.

“A 100 percent tariff on all chips and semiconductors coming into the United States,” he said. “But if you’ve made a commitment to build, or if you’re in the process of building, as many are, there is no tariff.”

The initial declaration sent shockwaves through the global semiconductor industry, but analysts said South Korean firms may be well-positioned to benefit from the exemption framework due to their ongoing investments in U.S. manufacturing.

Samsung Electronics currently operates a chip fabrication plant in Austin, Texas, and is building a second facility in Taylor, Texas, scheduled to begin operations in 2026.

SK hynix is constructing a $3.87 billion high-bandwidth memory packaging plant in West Lafayette, Indiana, with production expected to begin in 2028.

Kim Dong-young davekim0807@ajupress.com