US demands share of Samsung, SK Hynix's $268B AI profit windfall

The US told South Korea last month it is entitled to a share of Samsung Electronics and SK Hynix's semiconductor profits, arguing that American companies' massive purchases drove the Korean chipmakers' record earnings, according to an industry source.

"US Deputy Trade Representative Rick Switzer told Korean Trade Minister Yeo Han-koo that if Korean partner firms are entitled to parts of the profits, American ones are too," the source familiar with the matter said. The Korea Times reported the claim, which the US Trade Representative's office, Commerce Department and Treasury Department did not confirm.

South Korea's semiconductor exports hit a record $192.43 billion in the first half of 2026, up 162.5 percent from a year earlier, with shipments to the US surging 91.3 percent to $26.4 billion. In June alone, exports to the US skyrocketed 377.2 percent to $6.49 billion. Samsung Electronics is projected to post $156 billion in full-year 2026 profit, up 403 percent from 2025, while SK Hynix's profit is expected to reach $112 billion — a 3,633 percent surge from $3 billion last year, according to Bloomberg and FactSet estimates.

The demand marks an escalation in US-Korea semiconductor tensions that have until now focused on encouraging Korean companies to build fabrication plants on American soil. If Washington formalizes profit-sharing demands, it could deploy trade tariffs, antitrust investigations or price caps — tools it has used against foreign industries that captured outsized shares of US-linked profits.

Historical Precedent for Intervention

Citic Securities flagged two parallels in a research note. In the 1980s, Japan's semiconductor dominance triggered US tariffs, a 301 investigation and the US-Japan Semiconductor Agreement, culminating in 100 percent punitive tariffs. Japan's market share collapsed — though Korea, not the US, became the primary beneficiary. In the 2000s, the US Justice Department launched an antitrust probe into Taiwan's LCD panel makers, resulting in more than $800 million in criminal fines and prison sentences for executives. Taiwan's panel dominance subsequently shifted to China.

Two Signals to Watch

For now, US policy remains focused on ensuring supply. Commerce Secretary Howard Lutnick last week publicly urged Samsung and SK Hynix to build advanced DRAM and NAND fabs in the US, reinforcing the Trump administration's reshoring push. Neither company has committed to volume production of advanced memory chips on American soil.

Citic Securities identified two risk thresholds. First, if US tech giants shift from securing supply to publicly opposing memory price increases. Second, if the policy narrative pivots from localization to allegations of monopoly, price manipulation or supply-chain security. Switzer's profit-sharing claim may represent the earliest signal of that transition.

This article is for informational purposes only and does not constitute investment advice.