US Weighs Expanding Tariffs to Finished Semiconductors... "Relief for US-Based Production"

Lutnick: "Tariffs Are a Tool to Attract U.S. Investment"
Tariff Scope Could Expand to Consumer Electronics

The Donald Trump Administration is considering expanding semiconductor tariffs beyond chips to cover finished products such as data center servers and laptops. Simultaneously, it is also pursuing differentiated tariff burdens based on whether companies invest in production facilities within the United States. As a result, these developments are expected to influence the U.S. investment strategies of Korean semiconductor companies such as Samsung Electronics and SK Hynix.

On September 2 (local time), Howard Lutnick, U.S. Secretary of Commerce, stated in an interview with CNBC during the G20 Innovation Ministers' Meeting held in Chapel Hill, North Carolina, that the government is reviewing a "targeted and cautious tariff policy" regarding semiconductors.

Secretary Lutnick remarked, "If you produce in the United States, you do not pay tariffs," adding, "But if you do not manufacture in the U.S., you should be prepared to pay a price to enter the greatest market in the world."

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Bloomberg reported that the Trump Administration, while considering expanding semiconductor tariffs, is also likely to offer tariff reduction benefits to companies that invest in production facilities in the United States.

Secretary Lutnick emphasized, "We will provide tariff reductions if you manufacture in the U.S., and if you do not, you will pay tariffs." The aim is to use tariffs as a way to draw the world's leading semiconductor companies' production bases to the United States.

Secretary Lutnick stressed that tariff pressure is already drawing investment in the U.S. from global semiconductor companies. He cited commitments for investments in U.S. semiconductor production totaling approximately 1.2 trillion dollars, highlighting TSMC and Micron as prime examples.

He said, "TSMC is investing 265 billion dollars in Arizona, while Micron is committing 250 billion dollars," noting that "these two companies alone are investing over 500 billion dollars."

Tariff Expansion May Include Data Center Servers and Consumer Electronics

The scope of tariff application could broaden considerably. In January, the United States imposed a 25% tariff on certain advanced semiconductors. However, the new tariffs could target not only the chips themselves, but also finished products that include these chips.

Bloomberg reported that the new tariffs could be extended to data center servers and consumer electronics. Previously, Politico also reported that the U.S. government is considering including products incorporating semiconductors—such as laptops, gaming consoles, and data center servers—as tariff targets.

If implemented, these expanded tariffs could impact investment in data centers within the United States. Data center servers typically include a number of advanced chips, such as AI accelerators, memory, and network semiconductors. Concerns have been raised that if tariffs are extended to include finished server products, the cost of constructing data centers in the United States could increase.

Addressing these concerns, Bloomberg reported that Secretary Lutnick suggested reducing tariffs for companies that have established production facilities in the U.S. In January, the Trump Administration signed a proclamation imposing a 25% tariff on certain advanced semiconductors, including the Nvidia H200. At the time, the White House indicated that tariffs could be extended more broadly to cover semiconductors and their derivative products.

Samsung and SK Already Expanding U.S. Production—Focus on Tariff Benefits

SK Hynix Indiana West Lafayette Advanced Packaging Groundbreaking Ceremony. SK Hynix

Korean companies that are already building large-scale semiconductor production facilities in the United States may be directly affected by the new tariff regime. Samsung Electronics plans to invest more than 37 billion dollars in advanced semiconductor production facilities in the United States, primarily centered in Taylor, Texas. The Taylor plant will focus on advanced logic semiconductor production, and together with the existing Austin facilities, this project will expand Samsung's production base in the U.S.

SK Hynix is also investing more than 4 billion dollars to build the first high-bandwidth memory (HBM) advanced packaging production base in West Lafayette, Indiana. As the first HBM production base in the United States, the project is drawing attention locally. SK Hynix plans to commence mass production of next-generation HBM in the second half of 2029.

If U.S. semiconductor tariffs are linked to local investments, Samsung Electronics and SK Hynix are also expected to benefit from tariff reductions. The key issue remains the scale of these reductions. However, Secretary Lutnick did not disclose specific tariff rates, reduction standards by investment size, or the implementation timeline at this time.

This content was produced with the assistance of AI translation services.