[News] TSMC’s $100 Billion U.S. Investment Puts Pressure on Samsung and SK hynix’s Next Move

According to a report from TechNews, citing Chosun Biz, Taiwanese semiconductor giant TSMC’s massive investment plan in the U.S. is intensifying pressure on Samsung Electronics and SK hynix to take similar action, as U.S. President Donald Trump continues to escalate threats of tariffs and other economic penalties against trade partners.

As highlighted in the report, the U.S. is home to numerous major IC design companies, most of which are TSMC’s clients. TSMC’s decision to expand its U.S. production capacity stems from concerns that high tariffs could weaken the price competitiveness of its semiconductor exports to the U.S.

The report further indicates that as TSMC increases its investment in the U.S. and strengthens collaboration with local IC design firms, South Korean semiconductor companies may risk becoming marginalized in the market.

As indicated by the report, Samsung Electronics is constructing a foundry facility in Taylor, Texas, with plans to commence operations next year. Meanwhile, SK hynix is preparing to establish a semiconductor packaging production site in West Lafayette, Indiana, aiming to begin full-scale manufacturing by 2028.

Along with TSMC, both Samsung and SK hynix are recipients of U.S. subsidies under the CHIPS Act. The former U.S. administration announced in December 2024 its commitment to providing USD 4.75 billion in funding to Samsung Electronics for its USD 37 billion investment initiative and USD 458 million to SK hynix for its USD 3.87 billion investment plan, as indicated by a report from The Korea Times.

In addition, as noted by The Korea Times, Samsung and SK are grappling with the decision of whether to relocate their manufacturing facilities in Mexico and Canada. This comes in response to the U.S. government’s move to impose a 25 percent tariff on all imports from its two neighboring countries.

According to The Korea Times, Samsung Electronics is reportedly considering shifting the production of its laundry dryers from Queretaro, Mexico, to South Carolina in the U.S., while SK On, the battery manufacturing arm of SK Group, is working alongside Korean battery company EcoPro to construct a cathode material plant in Quebec, Canada, as the report notes.

Read more

• [News] TSMC Scales up U.S. Investment with $100B More, Adding Five New Chip Facilities in Coming Years
• [News] TSMC’s U.S. Investment Could Lead to 15% Price Hike, with AMD and NVIDIA Cheering on the Expansion
• [News] SK hynix U.S. Revenue More Than Doubles Amid Surging HBM Demand

(Photo credit: Samsung)