Samsung Electronics may have found a way to escape a potential 100% tax on its memory chips. The company owns a massive plot of land in Taylor, Texas, that could house the specific type of factories the U.S. government is now demanding.
The pressure comes from U.S. Commerce Secretary Howard Lutnick. Last week, he gave memory chip makers a blunt choice: “Build in America” or pay a 100% tariff. While he did not name specific brands, his message clearly targeted Samsung and SK hynix. These two South Korean giants lead the global market but currently manufacture their most popular memory chips outside the United States.
Right now, Samsung is already building a multi-billion-dollar plant in Taylor. Still, it is not set up for memory chips. Instead, it is a “foundry” that makes processors for other companies. Similarly, SK hynix is building a facility in Indiana. Still, that site only handles the final packaging stage, not the actual fabrication of the chips.
Industry insiders say Samsung has a “hidden ace” in Texas. Its Taylor site covers more than five square kilometers. According to the company’s original proposals to the city, the land has enough room for up to 10 separate factories. If the U.S. follows through on the tariff threat, Samsung could move some of its planned memory projects from South Korea to this Texas site.
Doing this would help Samsung stay competitive. If the U.S.-based company Micron gets a tax-free pass while Samsung faces a 100% tariff, Samsung’s prices would double, making it nearly impossible to win customers.
However, switching plans is not easy. Samsung would have to find thousands of highly skilled engineers in Texas, a struggle for tech firms already. There are also concerns in South Korea that moving production to the U.S. would hurt the local economy. For now, Samsung is staying quiet as it watches how U.S. trade policies develop.
