Key facts
- South Korea and the United States are discussing semiconductor investments in the U.S.
- The discussions are part of broader bilateral talks between the two nations.
- U.S. Commerce Secretary Howard Lutnick indicated plans for a 'targeted, thoughtful tariff policy' on semiconductor imports.
- South Korean chipmakers are set to receive favorable tariff rates on U.S. imports under a previous agreement.
- Negotiations on national security issues, including South Korea's nuclear-powered submarine plan, are not progressing.
South Korea and the United States are engaged in discussions regarding semiconductor investments within the U.S., as part of broader bilateral talks. A Seoul official indicated that these discussions are occurring amidst concerns that potential U.S. tariffs on chip imports could impact ongoing investment negotiations.
U.S. Commerce Secretary Howard Lutnick recently stated that Washington is planning a "targeted, thoughtful tariff policy" on semiconductor imports, emphasizing that companies not building manufacturing capacity in the U.S. should expect to pay to access the American market. However, under a significant deal struck last year involving $350 billion in South Korean investment in U.S. manufacturing, South Korean chipmakers are to receive tariff rates no less favorable than those offered to any other competitor with comparable or greater chip trade volumes.
South Korea is home to major memory chip manufacturers Samsung Electronics and SK Hynix, whose products are in high demand as U.S. tech firms accelerate efforts to build AI infrastructure. The official also noted that negotiations between Seoul and Washington on national security issues, including South Korea's ambition to build its own nuclear-powered submarine, have not been progressing.
Separately, Vietnam's leader To Lam is planning visits to Russia, France, the United States, and Canada in September to deepen ties amid trade uncertainty. South Korean President Lee Jae Myung is also scheduled to visit France from September 6-9 for a summit with President Macron, focusing on the film industry and bilateral cooperation.