South Korean semiconductor companies are reporting that recently announced U.S. tariffs on advanced artificial intelligence chips are unlikely to have a major effect on their businesses. Major South Korean firms produce a mix of memory chips and AI-related processors, but much of their revenue comes from products that are not directly targeted by the new tariff policy. As a result, executives believe the impact on export volumes and overall financial performance will be manageable.
Industry leaders point out that the tariffs mainly apply to the most advanced AI-specialised chips rather than the broader range of semiconductors South Korea is known for, such as memory modules used in everything from phones and servers to gaming consoles. Because these non-targeted segments constitute a sizeable portion of their global sales, South Korean manufacturers expect continued demand and steady business activity even as trade policy shifts in the United States.
Analysts also note that established relationships with U.S. and global tech companies — which rely on South Korean supply chains — help insulate these firms from tariff-related disruption. Additionally, South Korean chipmakers are diversifying their markets and product portfolios, further reducing dependency on any single region or policy regime. Such strategic positioning gives them flexibility in navigating changing international trade dynamics.
The broader takeaway is that while geopolitical and trade tensions over AI hardware are increasing, not all parts of the semiconductor industry are equally affected. For South Korea’s chip sector, the immediate outlook remains stable, with company leaders expressing confidence that they can adapt to evolving tariff environments without significant setbacks to growth or competitiveness.
