South Korea’s two semiconductor powerhouses, Samsung Electronics and SK hynix (Image courtesy of Yonhap)
SEOUL, Jan. 15 (Korea Bizwire) — South Korea’s semiconductor industry is bracing for new uncertainty after President Donald Trump imposed a 25 percent tariff on certain artificial-intelligence chips and related semiconductor products exported to China, a move that has heightened concern across global supply chains even as immediate fallout for Korean firms appears limited.
Under a proclamation signed this week, the United States will levy the tariff on imported semiconductors or derivative products that do not contribute to strengthening U.S. manufacturing capacity or supply chains.
The measure is expected to apply to advanced AI chips such as Nvidia’s H200 and AMD’s MI325X when they are produced in Taiwan, imported into the United States and then exported onward to China.
Those chips rely heavily on high-bandwidth memory supplied by Samsung Electronics and SK hynix, raising questions about whether the tariff could eventually translate into higher costs or pricing pressure for Korean memory producers.
A semiconductor wafer on display at the National Gwacheon Science Museum in Gyeonggi Province. (Yonhap)
Industry officials and analysts said the direct impact on South Korean companies is likely to be limited in the short term, noting that the policy is primarily aimed at China as part of Washington’s broader technology rivalry with Beijing.
Korea has also secured assurances from the United States that its semiconductor exports will receive “most-favored-nation” treatment, placing them on no worse footing than those from Taiwan, Japan or the European Union.
Still, uncertainty is growing. While existing supply contracts are unlikely to be affected immediately, executives warned that customers could eventually seek to pass on part of the tariff burden to suppliers in future negotiations.
“The bigger issue is the unpredictability,” one industry official said, pointing to the Trump administration’s willingness to use tariffs as leverage to force changes in corporate behavior and investment decisions.
The White House signaled that the latest move may not be the last, saying broader tariffs on semiconductors and derivative products could be introduced in the near future, along with offsetting programs designed to encourage manufacturing inside the United States.
Some analysts said the global impact may be muted by China’s own policies. Beijing has already restricted the use of certain high-end AI chips as it pushes to build domestic semiconductor capabilities, limiting demand for products such as Nvidia’s H200 even after recent easing of U.S. export controls.
An Ki-hyun, an executive at the Korea Semiconductor Industry Association, said the tariffs could raise prices for Chinese buyers while channeling additional revenue to the U.S. government, but added that China’s push for self-sufficiency means the longer-term effects remain uncertain.
South Korea’s top trade negotiator, Yeo Han-koo, who is currently in Washington, has delayed his return home to assess the implications of the proclamation. Officials said the government is coordinating closely with industry to evaluate potential risks, even as Seoul takes some comfort in assurances that Korean chipmakers will not be singled out for harsher treatment than their global rivals.
Kevin Lee (kevinlee@koreabizwire.com)
