US Secretary of Commerce Howard Lutnick speaks during a Senate Appropriations Committee hearing in the Dirksen Senate Office Building on Capitol Hill on June 04, in Washington, DC. (Getty Images)
US Secretary of Commerce Howard Lutnick speaks during a Senate Appropriations Committee hearing in the Dirksen Senate Office Building on Capitol Hill on June 04, in Washington, DC. (Getty Images)

South Korean chipmakers saw a silver lining as US Commerce Secretary Howard Lutnick has clarified that foreign chipmakers will be exempt from the recently announced 100 percent tariffs on semiconductors if they follow through on commitments to building US manufacturing plants.

This suggests Korea's Samsung Electronics and SK hynix will be spared, as both have sizeable plant projects there.

Lutnick made the remarks Thursday in a Fox Business interview, after Trump’s “100 percent tariffs” on imported chips — along with lack of specifics — had put Korean chipmakers on edge over the potential for hefty levies.

“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,” he said. "But you have to be confirmed and overseen building in America."

Lutnick stressed that Trump’s objective is to “get semiconductor manufacturing done here,” where the technologies can be controlled, estimating that the initiative could result in semiconductor-related investments of $1 trillion in the US.

The day before, Trump said he will impose 100 percent tariffs on all chips and semiconductors coming into the US, unless companies manufacture in America. But he left a key detail unclear on whether the tariff exemptions would apply exclusively to chips manufactured in US facilities or it would also cover chips produced by the same company in other countries.

More details of the semiconductor tariffs are expected soon, after the Commerce Department completes investigation under Section 232 of the Trade Expansion Act into the impact of those imports on US national security.

Under Lutnick’s explanation, Samsung and SK hynix appear likely to qualify, according to observers. Samsung runs a foundry in Austin, Texas, and is building a fabrication plant in nearby Taylor, scheduled to open in 2026. Meanwhile SK hynix has committed a $3.87 million investment in building an advanced chip packaging plant, which mass production targeted for 2028.

"Because Samsung Electronics and SK Hynix are constructing or planning fabs in the US, they will likely be exempt from the tariffs,” said Kim Rok-ho, an analyst at Hana Securities.


sahn@heraldcorp.com