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Samsung Electronics’ Pyeongtaek semiconductor complex, one of the world’s largest chip manufacturing facilities. / Source: Yonhap News

U.S. President Donald Trump’s warning of a 100% tariff on all imported semiconductors has put South Korean chip giants Samsung Electronics and SK hynix on edge. While Seoul has secured “most favored nation” treatment in recent trade talks, industry insiders fear that if such tariffs are imposed—particularly on products made in China for the U.S. market—the impact on the global semiconductor supply chain could be severe.

Speaking at the White House on August 6, Trump said, “Every semiconductor and chip coming into the United States will be hit with a 100% tariff,” adding that companies producing in the U.S. or building factories there would be exempt. The comments came a day after he told CNBC that detailed tariff rates would be announced next week.

Both Samsung and SK hynix produce large volumes of DRAM and NAND flash in China, which are then shipped to consumer markets including the U.S. Even with a 15% MFN tariff rate for Korea, products assembled in China could still face the full 100% rate. Analysts warn SK hynix could be hit particularly hard, as it is the exclusive supplier of high-margin HBM chips to Nvidia. Samsung, while manufacturing system semiconductors in the U.S., relies heavily on memory sales, making profit protection difficult.

Experts believe Trump’s comments are intended to pressure foreign firms into expanding U.S. investment, noting that such high tariffs would also hurt American tech companies. “If a 100% tariff were implemented, the backlash from U.S. firms would be intense,” said Song Young-kwan, senior fellow at the Korea Development Institute, adding that Korean companies already pursuing U.S. investments are unlikely to face the steepest rates.

Samsung is currently building a foundry in Texas, while SK hynix is planning a packaging facility in Indiana. Industry voices are urging further expansion to boost competitiveness in securing orders from U.S. tech giants.