U.S. threat of 100% tariff on Korean memory chips at odds with reality
8 days ago
- #memory chips
- #US-Korea trade
- #semiconductors
- U.S. Commerce Secretary Howard Lutnick threatens 100% tariffs on foreign memory chipmakers unless they build U.S. facilities.
- Industry sources view the threat as unrealistic due to high U.S. labor costs, skilled worker shortages, and an underdeveloped manufacturing ecosystem.
- Memory chips, including HBM, are standardized commodities where cost reduction is key, unlike foundry operations which can pass on higher costs.
- Korea and Taiwan dominate 80-90% of the U.S. memory chip market; a 100% tariff could double U.S. semiconductor prices.
- Samsung and SK hynix are investing billions in U.S. foundry and packaging facilities but face challenges in cost competitiveness.
- Korea is advancing its own semiconductor complex in Yongin, backed by massive private investment, to meet global demand.
- U.S. semiconductor production is 20-40% more expensive than in East Asia, with subsidies potentially insufficient to offset long-term costs.
- Micron, the only major U.S. memory maker, also relies on overseas production bases due to high U.S. operational costs.
- Experts warn that forcing memory production into the U.S. could raise already-high memory chip prices further.
- Samsung and SK hynix plan significant expansions in Yongin, focusing on AI memory and HBM production.