Samsung, SK face new pressure to expand investment in US

Samsung Electronics Executive Chairman Lee Jae-yong walks through the Seoul Gimpo Business Aviation Center, Tuesday, before departing for Seattle. Yonhap

Samsung Electronics and SK hynix are facing renewed pressure to expand their semiconductor manufacturing footprint in the United States, after U.S. Commerce Secretary Howard Lutnick publicly urged the two Korean memory chipmakers to build production facilities there.

Lutnick made the remarks Thursday (local time) during a concrete-pouring ceremony for Micron Technology's semiconductor fabrication plant under construction in Clay, New York.

His remarks came immediately after Micron unveiled plans to invest approximately $250 billion (377 trillion won) through 2035 to expand its U.S. manufacturing capacity, underscoring the U.S. Donald Trump administration's push to strengthen domestic semiconductor production.

Speaking at the event, Lutnick said he has been holding discussions with both Samsung Electronics and SK hynix regarding their U.S. operations, although he declined to provide specific details.

The message is widely viewed as signaling Washington's desire for the two Korean companies to establish advanced memory wafer fabrication plants in the U.S., going beyond the investment plans they have already announced.

Samsung is currently constructing a foundry complex in Taylor, Texas, while SK hynix plans to build an advanced packaging plant and research and development center for artificial intelligence (AI) memory products in Indiana.

Neither project, however, includes fabrication facilities for DRAM or NAND flash memory chips, the core manufacturing processes that underpin their global memory businesses.

Despite the mounting trade pressure, both firms have already unveiled their mega investment drives to build large-scale memory fabrication clusters in Yongin, Gyeonggi Province, and the country’s southwestern semiconductor belt.

This leaves little strategic need for them to immediately construct additional memory fabrication facilities in the U.S.

SK Group Chairman Chey Tae-won speaks on the firm's investment initiative at Cheong Wa Dae in Seoul, June 29. Joint Press Corps-Yonhap

The Trump administration has repeatedly stated its goal of producing 40 percent of the world's semiconductors in the U.S. by the end of Trump's presidency in 2029.

The renewed pressure also comes as both Korean chipmakers continue to face uncertainty over U.S. trade policy, including the possibility of additional tariffs on semiconductor imports.

Trump warned early this year that memory chipmakers which do not build manufacturing facilities in the U.S. could face tariffs of up to 100 percent — a threat evidently targeting Samsung Electronics and SK hynix.

“Both chipmakers will face an increasing dilemma over the possible investment in the U.S., as they seek to safeguard access to the world’s largest technology market,” an industry official said.

“However, it will be realistically unfeasible for both firms to immediately come up with additional investment plans in the U.S., as they recently confirmed massive investment plans for their home country.”

Micron's massive investment announcement is also seen as carrying competitive implications. Coming just one day before SK hynix' planned Nasdaq American Depositary Receipt listing, the timing is widely interpreted as reinforcing Micron's ambitions to strengthen its position against rivals in the high-value memory market, including high-bandwidth memory, which has become a critical component for AI servers.