South Korean chipmakers avoid US tariffs through domestic investments

Samsung and SK Hynix avoid US tariffs by investing in American chip manufacturing plants in Texas and Indiana.

Samsung and SK Hynix avoid US tariffs by investing in American chip manufacturing plants in Texas and Indiana.

South Korea’s Trade Minister said Samsung and SK Hynix will avoid the 100% US tariffs on semiconductor imports. The exemption follows both companies’ significant investments in US chip manufacturing facilities.

Trump had warned that countries failing to produce semiconductors domestically would incur steep tariffs but offered relief for those building factories in the US.

Samsung operates two chip fabrication plants in Texas, supported by the CHIPS and Science Act. Meanwhile, SK Hynix is building a packaging plant in Indiana with government grants and loans.

Samsung’s partnership with Apple will see chips manufactured at its Texas facility supply the iPhone line, particularly image sensors for next-generation models. Analysts expect this collaboration to boost Samsung’s semiconductor sales.

Apple also announced plans to invest an additional $100 billion in US operations over the next four years, highlighting the growing importance of domestic chip production.

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