The United States, while encouraging South Korean semiconductor firms to establish factories domestically, has quietly introduced a more direct demand—profit sharing.
According to a report by The Korea Times citing informed sources, U.S. Deputy Trade Representative Rick Switzer explicitly stated during a meeting last month with South Korean Trade Minister Ahn Duk-geun that the U.S. has the right to share in the massive profits of SK hynix and Samsung Electronics Co., Ltd.. This statement has not been officially confirmed by the U.S. side but has drawn attention within South Korean industry and government circles. Concurrently, South Korea's semiconductor exports to the U.S. surged by over 90% year-on-year in the first half of this year, providing direct context for the American stance.
This development indicates that the semiconductor tussle between the U.S. and South Korea is extending from the level of manufacturing localization to that of profit distribution, creating new policy pressure for the two South Korean chip giants.
The American Rationale: Purchases Drive Profits, Thus Entitling a Share
As reported by The Korea Times citing an industry source familiar with the matter, Rick Switzer told Ahn Duk-geun last month that substantial purchases of South Korean semiconductors by U.S. companies have directly driven the profit growth of these chipmakers, and therefore the U.S. is equally entitled to a share of these profits.
The source stated, "The U.S. logic is that if South Korean domestic partners are entitled to a share for contributing to part of the profits, then American companies should have the same right."
A senior South Korean government official also confirmed to The Korea Times that the U.S. did indeed raise this claim, but offered no further details. The Korea Times reached out multiple times to the U.S. Trade Representative's office, the Department of Commerce, and the Department of the Treasury for comment but received no response.
An official from South Korea's Ministry of Trade, Industry and Energy stated they were unaware of the matter and reiterated the country's basic position that "industry-related affairs should proceed based on the principle of commercial rationality." The official added that South Korean companies have announced investment plans through business roundtables that align with last year's tariff agreement and have been making large-scale investments for many years.
Surge in South Korean Chip Exports to U.S. Provides Basis for American Claim
The U.S. profit-sharing demand is supported by specific trade data.
South Korean government data shows that the country's total semiconductor exports reached a record $192.43 billion in the first half of the year, a 162.5% year-on-year increase. Exports to the U.S. grew by 91.3% to $26.4 billion.
The monthly figures are even more striking. In June, South Korean semiconductor exports grew 199.2% year-on-year to $44.82 billion, a record high. Exports to the U.S. soared by 377.2% year-on-year to $6.49 billion.
The sustained explosion in global demand for AI chips is the core driver of this growth, with SK hynix and Samsung Electronics Co., Ltd., as major global memory chip suppliers, benefiting significantly.
Beyond Factory Pressure, Profit Sharing Emerges as a New Front
Prior to this, Washington's public pressure on South Korean chipmakers had primarily focused on urging them to build factories in the U.S. Last week, U.S. Secretary of Commerce Howard Lutnick (Note: likely a typo for Gina Raimondo; the original text uses "Howard Lutnick," which appears to be an error) publicly called on Samsung Electronics Co., Ltd. and SK hynix to build memory chip manufacturing plants in the United States, continuing the consistent stance of pushing for semiconductor production localization since the Trump administration.
Both companies have announced significant investment plans for the U.S., but neither currently has specific plans for building advanced DRAM or NAND wafer fabrication plants there.
The emergence of the profit-sharing demand signifies that the U.S. pressure logic is expanding. If the factory-building demand points to future capacity layout, then profit sharing directly targets already-realized earnings, having a more immediate impact on companies' short-term finances.
How Should Excess Profits Be Distributed?
It is noteworthy that the U.S. profit-sharing proposal comes at a time when discussions around "excess profits" have been ongoing within South Korea.
In recent months, a debate has persisted in South Korea: should Samsung Electronics Co., Ltd. and SK hynix redistribute some of their excess profits to subcontractors and suppliers in their supply chains—who have contributed to some extent to realizing these profits. Some even argue that the public should also benefit, as taxpayer funds were used to support related infrastructure construction.
The U.S. intervention adds an external variable to what was originally a domestic distribution debate in South Korea, creating a more complex situation for the South Korean government and companies to navigate.
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