The US government is considering implementing targeted tariffs on semiconductor products, a move that has sent shockwaves through the global chip industry.
On September 4th, it was reported that the South Korean government issued an emergency statement on September 3rd, indicating it would engage in close consultations with the US to ensure that South Korean semiconductor companies would not be disadvantaged by this policy change. Simultaneously, US Commerce Secretary Howard Lutnick publicly revealed that the tariffs would be directly linked to whether chips were manufactured in the US, implying that the large-scale investments by TSMC and Micron Technology in the US were a testament to the tariff policy's effectiveness.
Analysts point out that if this policy is implemented, it will not only reshape the global semiconductor supply chain but could also impact South Korean chip giants such as Samsung Electronics and SK Hynix, as well as end products containing chips, such as laptops, game consoles, and data center servers.
Tariffs Linked to Domestic Production: "No Taxes for Products Made in the US"
US Commerce Secretary Howard Lutnick, in an interview with CNBC on September 2nd, revealed for the first time in detail the US government's policy thinking regarding semiconductor tariffs. He stated that the government will adopt a "targeted" and "thoughtful" tariff policy on semiconductors, with the core logic being to directly link tariffs to whether chips are manufactured in the United States. Lutnick bluntly stated, "If you manufacture in the United States, you don't pay tariffs; but if you don't manufacture in the United States, you must be prepared to pay the price for access to the world's largest market."
In the interview, Lutnick specifically named TSMC and Micron Technology, stating that these two companies are expanding their investments in the United States to mitigate potential tariff risks. He pointed out that TSMC is building a $265 billion semiconductor factory in Arizona, while Micron Technology is building a $250 billion memory factory. Lutnick emphasized that these massive investments demonstrate that the Trump administration's tariff policy is having the desired effect, successfully attracting leading global chip manufacturers to shift production capacity to the United States.
It is worth noting that the semiconductor tariffs the United States is considering may not only cover the chips themselves but may also expand to finished equipment containing chips. It has been revealed that end products such as laptops, game consoles, and data center servers may all be included in the tariff scope.
Furthermore, the US government is also studying setting different tariff rates and quotas for specific countries. This means that tariff risks in the global electronics manufacturing industry are spreading from upstream semiconductor manufacturing to downstream assembly, impacting the entire technology supply chain far beyond simple chip trade.
For the global consumer electronics industry, this policy move is undoubtedly a bombshell. Currently, from smartphones to personal computers, from game consoles to data center equipment, almost all electronic products heavily rely on semiconductor chips. If the US imposes tariffs on these chip-containing finished products, it will directly drive up the market prices of end products, ultimately burdening US consumers and consumers worldwide with the increased costs.
South Korean chip giants face impact, government urgently initiates consultations. The direction of the US semiconductor tariff policy is expected to directly impact South Korea's two major chip giants—Samsung Electronics and SK Hynix. Currently, Samsung Electronics is building a wafer foundry in Taylor, Texas, and SK Hynix is ??building an advanced packaging facility in Indiana for producing high-bandwidth memory (HBM). Although both companies have established production capacity in the US, their complex global supply chains mean that chips produced in South Korea and other regions may still face tariff barriers if exported to the US.
Faced with this potential risk, the South Korean government responded swiftly on September 3. A South Korean presidential official stated, "As far as we know, the specific details of the US semiconductor tariffs have not yet been finalized. The government will closely monitor developments and cooperate closely with the US to ensure that our companies are not adversely affected." The official emphasized that South Korea will actively consult with the US to strive for the most favorable trade conditions for South Korean chip manufacturers.
In fact, the South Korean government's confidence in seeking protection stems in part from a key consensus reached with the US last year. Reportedly, South Korea and the US agreed in a joint statement last year that semiconductor trade terms would be "no less favorable" than those enjoyed by countries with semiconductor trade volumes at least equivalent to South Korea's. This clause effectively secures a "most-favored-nation" treatment guarantee for South Korea, ensuring that South Korean companies do not face higher tariffs in the US than their main competitors.
Within this framework, Taiwan becomes a key reference point. Taiwan is currently the only economy whose semiconductor exports to the US exceed those of South Korea. Therefore, according to the logic of the agreement reached between South Korea and the US last year, Taiwan is likely to also enjoy preferential trade conditions no less favorable than those enjoyed by South Korea. This means that if the US ultimately grants Taiwan some form of tariff preference, South Korea could theoretically invoke last year's agreement to demand equal or better treatment.
Earlier this year, Taiwan reached an agreement with the US, securing a clear duty-free import quota. Under this agreement, Taiwan is allowed to import semiconductor products duty-free equivalent to 2.5 times its new investment capacity and 1.5 times its existing completed investment capacity. This arrangement provides a clear tariff exemption path for chip manufacturers with factories in the US and creates favorable conditions for Taiwanese semiconductor companies to compete in the US market.
For South Korea, this preliminary agreement between Taiwan and the US serves as both a reference and a pressure. The South Korean government and businesses need to ensure that South Korean chip manufacturers receive treatment no less favorable than their Taiwanese counterparts in the upcoming tariff negotiations; otherwise, the competitiveness of South Korean semiconductor products in the US market will be weakened.
Analysts point out that the US's proposed targeted semiconductor tariff policy signifies a profound transformation of global semiconductor trade rules. With the clear guidance that "production in the US is tax-free," global chip manufacturers will be forced to reassess their capacity layout strategies and accelerate the transfer of production capacity to the US. However, semiconductor factory construction is time-consuming and involves huge investments, making a large-scale transfer of production capacity unrealistic in the short term. During this transition period, the uncertainty of tariff policies will have a lasting impact on companies' investment decisions, supply chain management, and market pricing.
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