{"id":2208128,"date":"2025-01-29T08:00:35","date_gmt":"2025-01-28T23:00:35","guid":{"rendered":"https:\/\/koreapro.org\/?p=2208128"},"modified":"2025-01-28T15:34:44","modified_gmt":"2025-01-28T06:34:44","slug":"trumps-chip-tariffs-pledge-threatens-global-semiconductor-supply-chains","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2025\/01\/trumps-chip-tariffs-pledge-threatens-global-semiconductor-supply-chains\/","title":{"rendered":"Trump\u2019s chip tariffs pledge threatens global semiconductor supply chains"},"content":{"rendered":"

U.S. President Donald Trump <\/span>announced<\/span><\/a> plans to impose tariffs on computer chips and semiconductors \u201cin the very near future,\u201d with rates potentially reaching 100%. Speaking to Republican members of Congress on Monday night, Trump criticized the <\/span>CHIPS Act<\/span><\/a> for subsidizing companies like TSMC, claiming tariffs would force foreign manufacturers to relocate production to the U.S. \u201cThe only way you\u2019ll get out of this [tariffs] is to build your plant right here in America,\u201d he said. While TSMC has invested <\/span>$40 billion<\/span><\/a> in its Arizona factory, most of its production remains in Taiwan, supplying major clients like Apple, Nvidia and AMD.<\/span><\/p>\n

Trump\u2019s proposal risks significant disruptions to the semiconductor supply chain, which underpins consumer electronics and computing products globally. The plan could drive up costs for U.S. tech companies and consumers while taking years for promised benefits to materialize, as building new fabs and shifting production are long-term processes.<\/span><\/p>\n

WHY IT MATTERS<\/b><\/p>\n

Trump\u2019s tariffs will likely extend to South Korean-made chips, which would increase operational costs for <\/span>Samsung and SK Hynix<\/span><\/a>. These companies rely on global supply chains optimized around production in South Korea and other Asian hubs. Tariffs would force them to increase production at their U.S. facilities, where higher labor costs and regulatory burdens would significantly raise expenses. Additionally, reallocating resources to meet U.S. production demands could disrupt their R&D pipelines and delay advancements in cutting-edge technologies like 2nm chips.<\/span><\/p>\n

South Korea\u2019s semiconductor industry may also become more dependent on the Chinese market as an alternative to the U.S. However, this shift comes with risks. Selling more chips, particularly advanced chips, to China will likely <\/span>restrict<\/span><\/a> South Korean firms from accessing U.S. technology under CHIPS Act export restrictions. This would hinder their ability to innovate and compete globally.<\/span><\/p>\n

Trump\u2019s plan itself faces practical challenges. Building new fabs and training skilled workers in the U.S. takes years, and the global semiconductor ecosystem \u2014 including suppliers, materials and expertise \u2014 is deeply entrenched in Asia. Disrupting this network will lead to higher consumer prices and supply chain bottlenecks, diminishing the effectiveness of the proposed tariffs in the short term.<\/span><\/p>\n

South Korea\u2019s options to resist Trump\u2019s tariffs are limited. The country will likely leverage diplomatic channels and lobby U.S. tech giants like Apple and Nvidia, which rely heavily on South Korean semiconductors, to advocate against the tariffs. Domestically, the government will likely continue to <\/span>strengthen support<\/span><\/a> for its chipmakers through tax incentives, R&D grants and workforce development to retain technological leadership. South Korea may also coordinate with Japan and the EU to push back against U.S. protectionist measures.<\/span><\/p>\n

Business & Economy<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a>Technology & Cyber<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

U.S. President Donald Trump announced plans to impose tariffs on computer chips and semiconductors \u201cin the very near future,\u201d with rates potentially reaching 100%. Speaking to Republican members of Congress on Monday night, Trump criticized the CHIPS Act for subsidizing companies like TSMC, claiming tariffs would force foreign manufacturers to relocate production to the U.S. […]<\/p>\n","protected":false},"author":10407,"featured_media":2208129,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,28,29],"class_list":["post-2208128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy","tag-inter-korean-foreign-relations","tag-technology-cyber"],"yoast_head":"\nTrump\u2019s chip tariffs pledge threatens global semiconductor supply chains - Korea Pro<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2025\/01\/trumps-chip-tariffs-pledge-threatens-global-semiconductor-supply-chains\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump\u2019s chip tariffs pledge threatens global semiconductor supply chains - Korea Pro\" \/>\n<meta property=\"og:description\" content=\"U.S. President Donald Trump announced plans to impose tariffs on computer chips and semiconductors \u201cin the very near future,\u201d with rates potentially reaching 100%. 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