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US Chip Tariffs Loom: Korea & Taiwan Warned
18 Jan
Summary
- US Commerce Secretary threatened 100% tariffs on chipmakers.
- Expansion of US manufacturing is demanded for South Korea and Taiwan.
- US uses trade deals and tariffs to spur domestic chip investment.
US Commerce Secretary Howard Lutnick has delivered a stark ultimatum to leading South Korean and Taiwanese chip companies. He warned of potential 100% tariffs unless they commit to significantly expanding their manufacturing operations within the United States. This move signals a determined effort by the Trump administration to reshape global semiconductor supply chains.
The administration is employing a dual strategy, utilizing trade agreements alongside direct tariff threats to incentivize foreign investment in American semiconductor production. While these specific threats are targeted, broader semiconductor levies have been temporarily suspended. This focused approach highlights the administration's priority on bolstering domestic chip manufacturing capabilities.
This policy push is already yielding results, with companies like Micron undertaking substantial expansions in the US. Consequently, major chip manufacturers such as Samsung and SK Hynix are now reportedly evaluating their strategic options and potential responses to these escalating demands and the evolving trade landscape.
