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As the U.S. gears up to announce new tariffs on semiconductor products, anxiety is mounting among South Korean memory firms like Samsung and SK hynix. According to Sisa Journal and Asia Business Daily, both manufacture key memory semiconductors—including NAND and DRAM—in China, with their NAND production especially concentrated there.
As highlighted by Sisa Journal, Samsung’s Xi’an plant and SK hynix’s Dalian plant account for roughly 40% and 29% of their NAND output, respectively, which makes them particularly vulnerable to the impact of Trump’s upcoming chip tariffs, the report warns.
Asia Business Daily notes that China accounts for about 30% of global NAND output, ahead of South Korea (25%), Japan (20%), and the U.S. (15%). Interestingly, China also consumes 50% of the world’s NAND, with a significant portion— including chips from Samsung and SK hynix for clients like Apple, Dell, and HP—shipped directly to the U.S., the report suggests.
If Trump announces a 25% tariff on semiconductors next week, Asia Business Daily reports that 128GB NAND costs could rise by $2.5, with higher-capacity chips increasing up to $7.5. When factoring in logistics, packaging, and distribution margins, the final product price could soar by up to $15 per device, the report adds.
Samsung Less Prone on DRAM Tariffs
On the DRAM front, Sisa Journal notes that SK hynix may face a heavier blow than Samsung if the chip tariffs hit the road, as nearly 40% of its DRAM output comes from its Wuxi plant in China in 2024. Meanwhile, Samsung produces all its DRAM in Korea, so the impact is relatively low, the report says.
TrendForce’s latest investigations reveal that the implementation of the U.S. “reciprocal tariffs” on April 9th—followed by a 90-day grace period for most regions—has already prompted buyers and suppliers to adjust their strategies in response to policy uncertainty. With both sides rushing to complete transactions and shipments within the grace period to mitigate future policy risks, memory market activity is expected to pick up notably in 2Q25, with DRAM and NAND prices projected to rise by 3-8%, according to TrendForce.
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(Photo credit: Samsung)
