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As global semiconductor giants secure exemptions under Trump’s recently proposed 100 percent tariffs on chips, the list of companies actually facing these punitive levies is likely to be small. South Korea has just announced that its major semiconductor players, Samsung and SK Hynix, will not face these tariffs.
Earlier, we noted in an article that President Trump introduced sectoral tariffs for the semiconductor industry but exempted companies building or committed to building chip manufacturing facilities in the US.
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A short while later, President Trump confirmed that NVIDIA and Apple are exempt from these tariffs due to their significant investments in the US.
In fact, just today, Apple announced it would invest $600 billion over four years to build an end-to-end supply chain in the US. This includes initial silicon wafers through final packaged components for use in iPhones, Macs, and other Apple products. Apple will collaborate with US-based facilities of GlobalWafers America, TSMC, Texas Instruments, and Applied Materials.
South Korea has now confirmed that Samsung and SK Hynix will remain exempt from Trump’s new semiconductor-focused tariffs.
Note that Samsung is investing $45 billion in the US to build two chip fabrication plants, an R&D center, and a packaging facility by 2030. Similarly, SK Hynix is investing $3.87 billion in West Lafayette, Indiana, for memory packaging and advanced packaging fabrication and R&D facilities.
Given the significant qualifiers attached to Trump’s tariffs, it appears that only companies like SMIC, UMC, and Rapidus will face these punitive levies as they have no substantial manufacturing presence in the US.
Update: TSMC is also exempted.
📚 Reading Comprehension Quiz
Which of the following companies is NOT expected to face the recently proposed 100 percent tariffs on chips under Trump's new policy?
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