South Korean chipmakers, Samsung Electronics and SK hynix, are closely watching US trade policies under President Donald Trump’s second term, particularly potential restrictions targeting China.

Together, they have invested over US$45 billion in semiconductor chip fabrication plants in the country.

If Trump strengthens his proposed 60 percent tariffs on Chinese goods, they may shift production.

Samsung has already reduced its Xian factory by 10%, while SK hynix is expanding  its facilities in Korea.

Despite these challenges, shutting down Chinese facilities is not an option, as China remains a key market for both companies.

The focus may shift to high-value AI chips, which could help mitigate the impact of tariffs.