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6h ago

South Korea Moves to Secure Taiwan-Level Relief as U.S. Tariffs Target Advanced AI Chips

Officials invoke a 'no less favorable' commitment to press Washington for exemptions tied to U.S. investment benchmarks.

Semiconductor chips are seen on a circuit board of a computer in this illustration picture taken February 25, 2022. REUTERS/Florence Lo/Illustration/File Photo
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Trade Minister Yeo Han-koo speaks to the press at a train station in Washington, D.C., on Jan. 14, 2026. (Yonhap)
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Overview

  • President Donald Trump signed a proclamation imposing a 25% tariff on certain high-performance AI semiconductors, with products like Nvidia’s H200 and AMD’s MI325X cited, and the White House signaled broader measures could follow.
  • Seoul says the immediate impact on Korean firms is limited because memory chips are excluded for now, though officials warn uncertainty remains over potential second-phase actions.
  • The presidential office will consult the U.S. under a pledge of treatment no less favorable than other major partners, using the new U.S.-Taiwan framework as the reference point.
  • Washington’s deal with Taiwan ties tariff-free quotas to major U.S. investment commitments, reported at $500 billion in total with $250 billion from TSMC and quota levels up to 2.5 times output during construction and 1.5 times after start-up.
  • Commerce Secretary Howard Lutnick warned companies to build in the U.S. or face steep duties, while Seoul launched emergency consultations with Samsung and SK hynix, which have ongoing projects in Texas and Indiana.