Seoul: Shares of South Korean semiconductor giant SK Hynix slipped by over 3% in early trading on Thursday after former U.S. President Donald Trump proposed a 100% tariff on imported chips from countries that do not establish manufacturing operations in the United States. The move triggered alarm in Asian markets, especially as South Korea’s economy is deeply tied to the global semiconductor supply chain.
The proposal, part of Trump’s renewed push to onshore critical industries and reduce dependency on foreign manufacturing, sent shockwaves through the tech investment community. SK Hynix, which supplies cutting-edge high-bandwidth memory (HBM) chips to tech giants like Nvidia, appeared to be a likely target of the sweeping tariff measure raising fears of restricted market access and profit volatility.
However, the panic was short-lived. South Korea’s Trade Ministry swiftly intervened to calm the market. Trade envoy Yeo Han-koo publicly clarified that the proposed tariffs would not apply to SK Hynix or Samsung Electronics. Both companies are already involved in U.S.-based chip production and have active expansion plans that align with Washington’s strategic goals.
SK Hynix is currently developing a semiconductor packaging and AI-focused research facility in Indiana, a move that has strengthened its ties with the U.S. supply chain. Samsung, too, is progressing with its $17 billion chip plant in Texas. These investments appear to have shielded both companies from Trump’s protectionist threat.
This reassurance helped stabilize investor sentiment and underlined South Korea’s positioning as a strategic tech ally to the U.S., rather than a rival economic threat. The incident, however, highlighted the semiconductor sector's ongoing vulnerability to global politics, particularly U.S. efforts to repatriate high-tech manufacturing amid tensions with China.
The broader context adds weight to this development. Just last month, SK Hynix announced record-breaking Q2 profits, fueled by explosive demand for AI-related chips. It also pledged increased capital expenditure to meet surging orders. The exemption from tariffs now ensures that the company’s growth momentum won't be disrupted by U.S. trade barriers.
While the situation has calmed for now, the tariff proposal marks another chapter in the increasingly unpredictable landscape of global technology trade. For firms like SK Hynix, maintaining strong diplomatic and industrial ties with both Washington and Seoul is becoming as vital as innovation itself.