President Donald Trump (Image courtesy of Yonhap)
SEOUL, Aug. 20 (Korea Bizwire) — South Korea’s semiconductor industry was rattled Wednesday by reports that Washington is considering acquiring equity stakes in foreign chipmakers building plants in the United States, including Samsung Electronics and Taiwan’s TSMC.
The idea surfaced as the U.S. government explores converting subsidies provided under the CHIPS and Science Act into equity holdings. Intel is reportedly the first target, with Washington seeking to turn its subsidy package into a 10 percent stake.
Analysts say a similar approach could be applied to Samsung, which is receiving 6.5 trillion won ($4.8 billion) in subsidies for its 51 trillion won fab in Taylor, Texas, and to SK Hynix, which is building a $3.6 billion chip packaging facility in Indiana.
If applied on the same terms as Intel, the U.S. could gain roughly 1.6 percent of Samsung’s shares — a precedent that industry executives view with unease. “There is no clarity on whether this is a serious proposal or just a political signal,” said one industry official. “There is no known precedent for the U.S. government taking direct stakes in foreign semiconductor firms.”
Samsung Electronics Co.’s semiconductor facilities in Austin, Texas, in this photo provided by the company (Image courtesy of Yonhap)
Critics argue the move may be justified in Intel’s case, given its financial struggles, but lacks rationale when applied to global giants like Samsung or TSMC. Still, the discussion underscores the Biden and now Trump administrations’ increasingly assertive efforts to restructure global semiconductor supply chains around U.S. national interests.
President Donald Trump has already warned of 100 percent tariffs on semiconductors, while offering exemptions for companies that build plants in America. The timing of the equity stake proposal — just days ahead of a summit between Trump and South Korean President Lee Jae-myung — is widely seen in Seoul as additional pressure on Korean chipmakers to expand U.S. investment.
The U.S. push also reflects a broader strategy to secure economic security by binding the world’s most advanced manufacturers to American soil. Samsung and TSMC both possess leading-edge two-nanometer technology, seen as critical to Washington’s goal of becoming the global semiconductor leader by 2030.
Trump Tariffs Begin to Squeeze South Korean Electronics Giants (Image supported by ChatGPT)
But the mounting government intervention is stirring unease. Recent moves — including Washington’s demand for Intel’s CEO to resign over ties to China, later rescinded, and its acquisition of a “golden share” in U.S. Steel to veto management decisions — are viewed in Seoul and Taipei as signs of expanding state control over strategic industries.
“America is eyeing Samsung’s two-nanometer process technology as a prize,” said Lee Jong-hwan, a professor of semiconductor engineering at Sangmyung University. “Korea must weigh the risks of falling under U.S. government influence against the practical benefits it can gain.”
Kevin Lee (kevinlee@koreabizwire.com)
