[News] U.S. Chip Tariffs Could Hinge on Investment Scale: What’s at Stake for TSMC, Samsung, SK hynix?

A proposed U.S. semiconductor tariff is putting fresh pressure on foreign chipmakers to expand manufacturing in the country. According to Korea JoongAng Daily, citing Politico, the scale of each company’s U.S. chip investment could factor into its tariff treatment. U.S. Commerce Secretary Howard Lutnick confirmed in a CNBC interview on Thursday that the administration is considering linking tariff rates to investment levels. The potential reach of the tariffs could also extend well beyond chips themselves. Korea JoongAng Daily reports that duties could cover products containing semiconductors, including laptops, gaming consoles, and data center servers.

Under such an investment-based approach, Energy Economy News suggests that TSMC could be relatively well positioned given the scale of its U.S. expansion. The chipmaker has announced US$265 billion in U.S. investment, which the report says could help it secure more favorable tariff treatment than competitors if relief is ultimately tied to investment levels.

Taiwan’s U.S. investment push may not stop there. According to The Hankyoreh, Lutnick said Taiwan is expected to announce an additional US$20 billion to US$30 billion in U.S. investment next week. NewsQuest notes that if tariff relief is determined in part by comparing companies’ U.S. investment levels, Samsung Electronics and SK hynix could face greater pressure to expand their own investments.

Notably, according to Economic Daily News, Taiwan Economy Minister Kung Ming-hsin said the details of any U.S. Section 232 tariffs have yet to be formally announced, but noted that an existing Taiwan-U.S. MOU already provides tariff exemptions for Taiwanese companies investing in U.S. production. During construction, companies can receive a duty-free import quota equivalent to 2.5 times their planned U.S. capacity, falling to 1.5 times once production begins.

U.S. Pressure Mounts on Korean Memory Makers

Samsung Electronics and SK hynix are facing pressure to bring more memory production to the U.S. According to Korea JoongAng Daily, the Trump administration is pushing for front-end manufacturing of DRAM and NAND flash wafers to be carried out domestically. The report adds that Samsung currently operates two fabs in Austin, Texas, and is completing a new fab in Taylor, with operations expected to begin in 2026. SK hynix, meanwhile, recently broke ground on an advanced packaging facility for HBM in Indiana.

Both companies therefore have existing U.S. investments that could support their case for tariff relief. However, NewsQuest notes that it remains unclear whether such investments would also exempt chips produced in South Korea and exported to the U.S., leaving a key question over how the proposed tariff framework would apply to their Korean production.

The Korea JoongAng Daily adds that Lutnick has repeatedly urged foreign chipmakers this year to establish memory production in the U.S. or risk facing tariffs. Most recently, on July 9, he reiterated the call during a construction ceremony at Micron’s New York fab site, a day before SK hynix began trading on Nasdaq through American depositary receipts (ADRs). Still, shifting more memory production to the U.S. could face practical hurdles. Korea JoongAng Daily notes that even Micron, the only major U.S.-based memory chipmaker, currently operates more factories overseas than at home.

Read more

• [News] Trump Reportedly Plans Broad Chip Tariffs on End Products; Consumer Demand Could Face Further Pressure
• [News] Samsung to Start Taylor Fab 2 Build by End-2026, Targets 2030 Mass Production; Eyes 1.4nm Expansion

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