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According to Business Korea, which cites analyst forecasts, if the U.S. enacts a 25% tariff on semiconductors, it could lead to a 4.3% drop in revenue for Korean chipmaking companies.
The report points out that though the direct impact on overall revenue is relatively limited—estimated at just 1.3% to 1.7%—since 15% to 20% of Korean semiconductor companies’ sales are directly exported to the U.S., indirect effects must also be taken into account.
These stem from Korean semiconductors being incorporated into IT products assembled in countries like China, Taiwan, and Vietnam, which are then shipped to the U.S. and potentially subject to steep tariffs, as highlighted by the report.
Meanwhile, the report also brings up concerns of a potential decline in IT consumption or reduced semiconductor orders caused by rising prices. When these factors are considered, the actual impact of the tariffs on Korean semiconductor companies’ performance could reach around 6%, the report suggests.
Samsung’s Mexico-Based TV Manufacturing Eases Tariff Pressure
Regarding the implications of U.S. tariffs on South Korean tech firms, a report from Reuters highlights that Samsung Electronics’ television division may face less disruption than its competitors, since Samsung primarily manufactures its TVs in Mexico—helping shield the business from direct tariff exposure, according to a company executive.
As noted by Reuters, citing Yong Seok-woo, president of Samsung’s visual display business, the company plans to adjust production allocation across its roughly 10 global manufacturing bases in response to evolving tariff developments. Samsung will continue to monitor changes in U.S. trade policy and adapt its strategy accordingly, the Reuters report adds.
Samsung’s TV manufacturing operations span multiple countries, such as Vietnam and India, as indicated by Yonhap News. While TVs produced in Mexico are exempt from the new tariffs, those shipped from Vietnam are subject to a 46% reciprocal tariff when entering the U.S., and units from India face a 26% tariff.
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(Photo credit: Samsung)
