The semiconductor wafer displayed at the Gwacheon National Science Museum. The Gwacheon National Science Museum is an attractive science and technology cultural experience facility where visitors can enjoy science like a game. It is known as the largest science museum in Korea and a landmark in the Seoul metropolitan area. (Image provided by Yonhap)
SEOUL, Aug. 8 (Korea Bizwire) — A report released on Friday suggests that the focus of South Korean companies should shift towards the potential tariffs on IT electronics such as smartphones and PCs, rather than solely on semiconductors, in light of ongoing U.S. tariff discussions.
Kim Rok-ho, an analyst at Hana Securities, noted that while U.S. President Donald Trump had hinted at a 100% tariff on semiconductors, South Korea’s major semiconductor manufacturers, Samsung Electronics and SK hynix, are already building or planning to establish production facilities in the U.S. This could allow them to bypass such tariffs. U.S. Secretary of Commerce, Howard Rutnik, had also indicated that semiconductor tariffs would be waived for companies that build production facilities in the U.S., further alleviating concerns.
Kim stated that the impact of tariffs on South Korea’s semiconductor exports to the U.S. would likely be limited, given these investments. However, he pointed out that if a 100% tariff were imposed on semiconductors, it could affect the $2.4 billion worth of semiconductors South Korea exported to the U.S. last year.
This figure does not account for semiconductor exports from other countries, such as China and Vietnam, which could significantly inflate the tariff amounts.
Despite the semiconductor concerns, Kim emphasized that the looming tariff threat on IT electronics, including smartphones, was a more pressing issue. If tariffs were imposed on smartphones and PCs, even with semiconductor tariffs waived, South Korean companies could find themselves at a competitive disadvantage in the U.S. market against Apple.
In light of this, Kim speculated that Apple’s recent announcement of a $600 billion investment in the U.S. over the next four years may be a strategic move to preemptively address potential tariffs on smartphones.
This investment, Kim argued, strengthens Apple’s position in the U.S. market and enhances its competitive edge in pricing over rivals like Samsung Electronics.
Kim concluded that the upcoming tariff decision on IT electronics, alongside the semiconductor tariff talks, would be critical for assessing the broader impact on South Korean tech companies.
Kevin Lee (kevinlee@koreabizwire.com)
