Korean chipmakers Samsung Electronics and SK hynix are worried about their substantial investments in the US following US President Donald Trump’s pick for Commerce Secretary, Howard Lutnick’s comments.

Lutnick indicated that the new administration might review subsidies promised under the CHIPS Act, which supported global chipmakers like Samsung and SK hynix.

Both companies are investing billions of dollars in US fabs, with Samsung receiving US$4.74 billion in subsidies for a US$37 billion project in Texas, and SK hynix securing US$485 million for its Indiana plant.

The potential cuts to subsidies could affect these companies, which already face challenges in securing customers for their US facilities.

Lee Jong-hwan, a semiconductor professor at Sangmyung University, pointed out that the US relies heavily on high bandwidth memory chips from Samsung and SK hynix for artificial intelligence.