Nvidia CEO Jensen Huang joins US Secretary of Commerce Howard Lutnick and different delegates for a bunch photograph on the G20 Innovation Ministerial summit in Chapel Hill, North Carolina, on Sept. 2, 2026. (Reutres/Yonhap)
US Commerce Secretary Howard Lutnick has confirmed plans for focused semiconductor tariffs that may penalize firms that don’t manufacture chips within the US. The brand new coverage would tie tariff charges as to if chipmakers have manufacturing services within the US, stepping up stress on overseas firms to put money into American manufacturing.
The transfer poses new geopolitical and financial challenges for a joint initiative by the Korean authorities and chipmakers to construct huge semiconductor complexes in Yongin, south of Seoul, and within the southwest Honam area, with the objective of creating Korea as a powerhouse in superior chips for synthetic intelligence.
Talking to CNBC on the sidelines of the G20 Innovation Ministerial in Chapel Hill, North Carolina, on Wednesday, Lutnick stated the administration was engaged on a “focused, considerate tariff coverage” for semiconductors.
“For those who construct right here, you don’t pay, however if you happen to don’t construct right here, count on to pay to enter the best market on this planet,” he stated, including that “all the businesses know [the tariffs are] coming.”
Lutnick had already stepped up stress on Korean chipmakers on July 9, saying that he desires Samsung and SK Hynix to construct manufacturing services within the US.
The brand new semiconductor tariff regime is anticipated to supply decrease charges to firms investing in US chipmaking whereas imposing larger tariffs on these that don’t.
Lutnick drew an analogy to the Trump administration’s strategy to prescribed drugs.
“We gave tariff reduction to firms who constructed their modern prescribed drugs in America and did MFN (most-favored-nation). In order that’s what you need to search for in semiconductors,” he stated.
Underneath pharmaceutical tariffs introduced in April, the US imposes a 100% tariff on imported patented medication and components, whereas firms with authorized plans to maneuver manufacturing to the US qualify for a diminished charge of 20%.
The semiconductor tariffs might additionally prolong nicely past the chips themselves. Politico reported final month that the Trump administration was contemplating tariffs on completed merchandise containing semiconductors, together with laptops, gaming consoles and servers for AI information facilities. Lutnick confirmed within the interview Wednesday that Politico’s reporting was “precisely proper.”
In the intervening time, the US solely imposes semiconductor tariffs on sure merchandise, together with superior AI chips equivalent to Nvidia’s H200 which can be imported into the US after which reexported.
Washington’s newest transfer is broadly seen as a part of a broader effort to broaden home semiconductor manufacturing and construct out the trade’s US provide chain.
Chang Sang-sik, the director common of the Institute for Worldwide Commerce on the Korea Worldwide Commerce Affiliation, stated Washington was steadily ratcheting up stress on overseas chipmakers to put money into the US.
“Taiwan is without doubt one of the essential targets of the semiconductor tariffs, and its tariff therapy has already been tied to US funding. Meaning Korea can have some robust selections to make,” he stated.
Underneath a commerce settlement reached by Washington and Taipei in January, Taiwanese semiconductor firms equivalent to TSMC, the world’s largest contract chipmaker, can import chips tariff-free throughout development of latest US services at volumes of as much as 250% of these services’ deliberate manufacturing capability, with imports above that threshold receiving a preferential tariff charge. As soon as the vegetation are constructed, firms can proceed importing tariff-free volumes equal to 150% of their new US manufacturing capability.
Lutnick stated Wednesday that world chipmakers together with TSMC and US reminiscence producer Micron had dedicated to a mixed US$1.2 trillion in US funding. He additionally stated Taipei would announce one other US$20 billion-30 billion in US funding subsequent week.
Growing stress from Washington might complicate the Korean authorities’s makes an attempt to coordinate main investments by Samsung Electronics and SK Hynix, which introduced in late June that they might spend about 800 trillion gained constructing new semiconductor fabs in Korea’s southwestern Honam area.
President Lee Jae Myung (middle) joins fingers with SK Group Chairman Chey Tae-won and Samsung Electronics Chairman Lee Jae-yong at an announcement of three “megaprojects” from the Blue Home on June 29, 2026. (pool photograph)
Some consultants, nonetheless, warn that Washington’s focused semiconductor tariffs might backfire on US firms.
“If the US authorities imposes excessive tariffs on reminiscence chips exported from Korea, the burden will finally be borne by the US tech giants that import and use these chips,” stated Park Jae-geun, a distinguished professor of semiconductor engineering at Hanyang College and president of the Korean Society of Semiconductor & Show Know-how.
“Contemplating that the brand new tariffs might find yourself growing prices for US tech corporations competing with China over AI, Korean firms want to steer the US authorities to grant exemptions primarily based on workforce issues and the investments they’re already making within the US.”
In different phrases, since reminiscence chips made by Samsung Electronics and SK Hynix have grow to be indispensable to the AI trade, Korean chipmakers can warn Washington that the focused tariffs might undermine the event of the US’ AI sector.
The Blue Home commented Thursday that the main points of the US semiconductor tariff plan haven’t been finalized.
“We are going to monitor developments and work carefully with the US to make sure that Korean firms usually are not adversely affected,” an official stated.
By Park Jong-o, workers reporter; Bae Ji-hyun, workers reporter; Kim Gained-chul, Washington correspondent
Please direct questions or feedback to [english@hani.co.kr]
