Lutnick Signals 'Targeted Semiconductor Tariffs,' Pressuring Samsung Electronics and SK hynix to Increase U.S. Investment

[Financial News] Howard Lutnick, U.S. secretary of commerce, said the United States is preparing 'targeted semiconductor tariffs' that would waive or reduce tariffs for companies building production facilities in the country. The domestic semiconductor industry is closely monitoring the development. The move would directly link investment in U.S. production facilities to semiconductor tariff reductions and is being interpreted as a strategy to pressure Samsung Electronics and SK hynix to make additional investments in the United States.
According to industry sources on the 3rd, Lutnick appeared on U.S. economic news outlet CNBC on the 2nd local time and said, "If you build a manufacturing facility in the United States, you will receive tariff relief on semiconductors. If you do not, you will have to pay tariffs to enter the world's largest market."
Compared with Lutnick's remarks last August that he would "hold off on semiconductor tariffs for companies that promise to build factories in the United States during President Trump's term and follow through on that promise," the latest comments appear to take a tougher stance.
Experts analyzed the remarks as an escalation of pressure on South Korean and Taiwanese companies benefiting from the artificial intelligence (AI) boom to expand their memory semiconductor production capacity in the United States.
Samsung Electronics is currently building an advanced foundry, or contract semiconductor manufacturing plant, in Taylor, Texas, with an investment of at least $17 billion. The plant is scheduled to begin operations by the end of this year. Including its existing Austin plant and research and development facilities, the company's planned investment in Texas is expected to exceed $37 billion.
SK hynix is also investing more than $4 billion to build an advanced high-bandwidth memory (HBM) packaging plant in West Lafayette, Indiana. Advanced wafers produced in South Korea will be shipped to Indiana for packaging and testing before being supplied to local customers as 'Made in the USA' products. Mass production is scheduled to begin in the second half of 2029.
Jonghwan Lee, Professor of System Semiconductor Engineering at Sangmyung University, said, "The products making money from the surge in AI demand are AI semiconductors, and the United States desperately wants production plants located within its borders." He pointed out, "However, what the United States wants is a memory semiconductor plant using the latest technology, and from South Korea's national perspective, it is a strategic technology, so it is not easy to hastily build a production line." Lee added, "From a corporate perspective, considering demand from U.S. big tech companies that need AI semiconductors, it is not a bad option in terms of profitability." However, he advised, "If there are concerns about technology leakage or if it could directly affect national competitiveness, companies should respond flexibly while consulting with the government."
The semiconductor industry views the planned imposition of targeted semiconductor tariffs as an extension of the Trump administration's existing policies.
An industry official said, "It is difficult to assess because no specific policy has been announced, but the remarks are intended to encourage production in the United States, so the direction or overall stance of U.S. government policy has not changed." The official added, "The industry is closely monitoring the details of the policy." Another industry official was more cautious, saying, "It would be best to watch how the remarks develop and respond accordingly."
[email protected] So-hyun Park Reporter