Seoul [South Korea], August 11 (ANI): South Korea’s top chipmakers may escape the brunt of US President Donald Trump’s proposed 100 per cent tariffs on imported semiconductors, after US Commerce Secretary Howard Lutnick clarified that companies investing in US manufacturing plants would be exempt.
“So 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 if your auditor oversees your building it all the way through, then he will allow you to import your chips — while you are building — without a tariff,” Lutnick explained in a Fox Business interview, reported by The Korean Herald. “But you have to be confirmed and overseen building in America.”
Under this clarification, Samsung and SK hynix appear well-positioned. Samsung already operates a semiconductor foundry in Austin, Texas, and is constructing a USD 17 billion fabrication plant in Taylor, Texas, slated to open in 2026. SK hynix has pledged USD 3.87 billion for an advanced chip packaging plant in the US, with mass production expected in 2028.
Trump’s announcement of imposing 100 per cent tariffs on all imported chips unless they are made in America, had left Korean firms uncertain about the details and potential fallout. However, he left a key detail unclear on whether the tariff exemptions would apply exclusively to chips manufactured in US facilities or would also cover chips produced by the same company in other countries. Lutnick’s remarks have eased concerns in Seoul.
Based on the available information, the growing feeling among analysts is that Samsung Electronics and SK hynix will likely be exempt from the 100% tariff.
Lutnick underscored that the goal is to “get semiconductor manufacturing done here,” ensuring key technologies are controlled within US borders. He estimated the initiative could generate up to USD 1 trillion in semiconductor-related investments in the country.
The Commerce Department is still conducting Section 232 investigation under the Trade Expansion Act to assess the national security implications of chip imports. Further details on the scope and application of the tariffs are expected once the review is complete. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
