S Korea seeks US talks on chip tariffs, official says

South Korea plans to negotiate with the US for more favorable tariffs on imported memory chips, according to a presidential spokesperson.

The country previously outlined in a trade deal with the US that it should not be subject to worse tariff treatment than key competitors.

South Korea’s trade minister said that US tariffs on certain advanced computing chips are expected to have limited impact on local firms.

Major South Korean memory chip producers include Samsung Electronics and SK Hynix.

The negotiations come amid ongoing discussions over US tariffs affecting the semiconductor industry.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Verify whether DRAM (dynamic random‑access memory) or NAND (flash memory) fit the “narrow advanced computing chip” scope, since the proclamation targets a limited AI‑relevant set rather than all semiconductors 1.
Confirm the exact “covered products” definitions and exempt uses under the proclamation 1. The 25% tariff applies only to certain advanced computing chips imported to the U.S. 1. U.S. data centers and R&D are excluded 1. Repairs and startups are exempt 1. Non‑data‑center consumer and civil industrial uses are excluded 1. U.S. public sector applications are excluded 1.
Track any Phase 2 move that broadens the plan to more semiconductors, which could change exposure for memory makers 1.
Press on how Seoul’s push for better terms and the trade minister’s “limited impact” view square with Samsung alongside SK Hynix among the largest memory makers.
Look for carveouts for imports that “support domestic supply chains” that the proclamation allows 1.

OSAT (outsourced semiconductor assembly & test) firms should set capacity and compliance plans, since export controls drove high‑end orders to Taiwan OSATs and advanced packaging demand surged in early 2025 2.
Trade‑compliance consultancies with 3PLs (third‑party logistics providers) can build services that map products to the exempt uses above 1. Set documentation and routing to fit the paths 1.
Advanced packaging market is set to reach USD 77.12 billion by 2031 at 8.56% CAGR 3. Growth leans on 2.5D/3D packaging (stacked or side‑by‑side die integration), fan‑out WLP (wafer‑level packaging), and chiplets (modular chip building blocks) 3.
North American chip manufacturing/packaging operators should expand domestic OSAT with U.S. CHIPS and Science Act support to cut reliance on Asia 4.
With Seoul seeking better terms on memory chips, assembly hubs in Malaysia, Vietnam, and India can court overflow tied to diversification plus incentives to localize chip assembly 4.