South Korea Assesses Impact of U.S. AI Chip Tariffs on Domestic Semiconductor Industry
South Korea’s Industry Minister Kim Jung-kwan convened semiconductor industry representatives on January 15 to address the newly imposed 25% U.S. tariff on advanced AI chips. The government emphasized proactive monitoring to mitigate effects on domestic manufacturers, particularly for chips like Nvidia’s H200 and AMD’s MI325X processors.
While the ministry downplayed immediate operational impacts—citing exemptions for data center and startup-related semiconductors—concerns linger over potential WHITE House measures to incentivize domestic production. A Trump-era national security order frames these tariffs as part of broader efforts to reshore semiconductor capabilities, creating uncertainty for global supply chains.