Two Korean chip giants escape 100% US tariff

South Korea will enjoy the most preferential US tariff rate on chips, with Samsung Electronics and SK hynix exempted from 100% tariffs on chip products.

South Korea's top trade envoy, Yeo Han-koo, said on August 7 that Samsung Electronics and SK hynix will not be subject to 100% US tariffs on chip products.

Among countries, South Korea will enjoy the most favorable US tariffs on chips under the trade deal between the two countries, Yeo said on a radio show, without giving further details.

Previously, on August 6, US President Donald Trump announced that the US would impose a tax of about 100% on semiconductor products imported from countries that do not produce or have no plans to produce in the US.

He also said the rule would not apply to companies that have already committed or are in the process of investing in manufacturing in the U.S. However, Mr. Trump’s statement was not an official announcement and many details remain unclear.

Samsung has already invested in two chip factories in Austin and Taylor, Texas, while SK hynix has announced plans to build an advanced chip packaging plant and an R&D facility for artificial intelligence products in Indiana.

Although both Samsung and SK hynix have investments in the US, there are doubts about whether SK hynix's packaging plant alone would qualify for a full tariff exemption, said Baik Gil-hyun, an analyst at Yuanta Securities.

As for Samsung, he said the company benefits not only from its investments but also from the news that Samsung has entered Apple's supply chain.

Earlier, Apple announced on August 6 that Samsung Electronics will supply chips from its Texas factory for its products, including the iPhone.

Following the news, shares of Samsung Electronics rose 2.6%, while shares of SK hynix also rose 0.6%, in line with the general market's gains.

Neither company has commented on Mr. Trump's statement./.

(Vietnam News Agency/Vietnam+)

Source: https://www.vietnamplus.vn/hai-ong-lon-ve-chip-cua-han-quoc-thoat-don-thue-quan-100-cua-my-post1054254.vnp