US reportedly seeks 'excess profits' from Samsung, SK Hynix on AI chip sales

The U.S. government has reportedly requested that South Korean semiconductor giants Samsung Electronics and SK Hynix share a portion of their "excess profits" generated from the booming artificial intelligence chip market. According to a source familiar with the matter cited by The Korea Times, the U.S. made this assertion during recent trade consultations with South Korea.

The U.S. rationale, as conveyed by Deputy U.S. Trade Representative Rick Switzer during a meeting with his South Korean counterpart, is that substantial purchases of South Korean semiconductors by American companies have significantly contributed to the impressive profits reaped by Samsung and SK Hynix amidst the AI chip frenzy. Therefore, the U.S. believes its own corporate partners should receive a share of these "excess profits," mirroring any potential benefits shared with domestic South Korean suppliers.

A high-ranking South Korean official confirmed to The Korea Times that such a claim was indeed made by the U.S. side, though further details were not disclosed. South Korean officials emphasize that Samsung and SK Hynix have already committed to various investment plans in the U.S., as announced following a tariff agreement last year, and have consistently invested in the American market over the years. Seoul's stance is that industrial cooperation should fundamentally rest on principles of commercial rationality.

This U.S. proposal comes as South Korea's semiconductor exports surge. Official statistics reveal that semiconductor exports reached a record $192.43 billion in the first half of this year, a 162.5% increase year-on-year. Exports to the U.S. alone amounted to $26.4 billion, up 91.3%. In June, South Korean semiconductor exports hit $44.82 billion, a 199.2% year-on-year increase, with exports to the U.S. soaring by 377.2% to $6.49 billion.

While the "excess profit sharing" claim has surfaced, the U.S. government's public statements have primarily focused on encouraging increased investment from Korean companies in the U.S. U.S. Commerce Secretary Gina Raimondo recently urged Samsung Electronics and SK Hynix to build advanced DRAM and NAND memory wafer fabrication plants in the U.S. to align with the administration's policy of reshoring semiconductor manufacturing. Although Samsung and SK Hynix have announced U.S. investment plans, they have not yet committed to establishing advanced DRAM or NAND mass-production wafer plants in the country. Neither the USTR, the Commerce Department, nor the Treasury Department responded to The Korea Times' request for comment, and South Korea's Ministry of Trade, Industry and Energy stated it was unaware of the situation and could not comment.