Samsung, SK hynix's 800 trillion won bet at home may create U.S. pressure
After the Korean government's drive for regional development resulted in massive investment plans by the semiconductor giants, the United States may also soon be clamoring for commmitments.
A foundry owned by Samsung Electronics in Taylor, TexasSAMSUNG ELECTRONICS
Samsung Electronics and SK hynix have unveiled a combined 800 trillion won ($520 billion) plan to expand chipmaking facilities in Korea's Jeolla region, a homeland bet so large that the two companies may now have to brace for Washington in turn demanding they invest more in the United States.
The U.S. government has kept up a drive to use semiconductor tariffs as leverage to bring foreign chipmakers onto American soil, and industry sources say that could sharpen its demands on Samsung and SK hynix just as they commit vast sums back home.
Some in the chip industry say the indirect pressure has already begun since the announcement, and there is talk that Washington could revive its threat of a 100 percent tariff on semiconductors.
U.S. President Donald Trump said earlier this year that he would impose a 100 percent tariff on memory chipmakers that do not build production plants in the U.S., a threat aimed squarely at Samsung and SK hynix. The measure has been suspended, but the industry expects it could be revived at any time.
Officials see room for further demands, as the Jeolla plan dwarfs the two companies' U.S. commitments.
Samsung is building a $37 billion chip complex in Taylor, Texas. Its first fab there, a foundry using an advanced 2-nanometer process, is set to begin operating in the second half of this year.
SK hynix, for its part, is spending $3.87 billion to build an advanced packaging base for AI memory in Indiana.
Flags of the United States, Korea, Texas and Samsung fly in front of the Samsung Electronics semiconductor chip plant in Taylor, Texas, on Jan. 2.EPA/YONHAP
The two companies are reportedly considering how to respond, whether by firming up their existing U.S. plans, adjusting the pace of their investment or potentially expanding.
Samsung could soon flesh out plans for a second fab in Taylor.
SK hynix, whose U.S. footprint is smaller than Samsung's and which is set to list on the Nasdaq on Friday, may be more sensitive to pressure. That has drawn attention to whether SK hynix might add a memory production plant in the United States beyond its packaging site in Indiana.
The stakes reach past Washington. Industry sources say rivals in China, Taiwan and Japan are watching the Jeolla plans closely for how they could reshape the global chip supply chain.
For Samsung and SK hynix, they are now feeling pressure from two directions at once.
"Samsung Electronics and SK hynix have to weigh massive domestic investment, in line with the government's push for balanced regional development, against U.S. demands to invest more there," an industry source said. "They are preparing for the possibility that Washington ramps up the pressure ahead of the midterm elections."
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
