Seoul: Samsung Display Co. is "closely monitoring" the impact of the proposed tariff on semiconductors by the United States, which may hurt sales of its finished products, the company's chief said Thursday. The remarks were made after U.S. President Donald Trump announced plans for a tariff of around 100 percent on semiconductor imports, expected to be officially announced in the coming weeks.
According to Yonhap News Agency, Samsung Display Chief Executive Officer (CEO) Yi Chung stated that the company is observing the situation closely as other parts makers, including display firms, may face pressure to lower prices if the cost of finished products increases. Despite the potential challenges, Yi mentioned that the company has not yet considered making a direct investment in the United States. Samsung Display currently operates production lines in South Korea, China, Vietnam, and India.
The CEO expressed concerns that the industry might experience a downturn in sales for the remainder of 2025. Yi noted that although the display sector typically benefits from a favorable environment in the second half of the year as clients release new products, there are concerns that the proposed tariff could lead to higher product costs and subsequently lower demand.
Yi also highlighted Samsung Display's strong position in the global panel industry, referencing the popularity of Samsung Electronics' Galaxy Z Fold 7 and Galaxy Z Flip 7. When asked about the company's supply of foldable panels to U.S. tech giants, Yi affirmed that Samsung Display is "ready to take on new challenges."
There has been speculation that Samsung Display may supply panels for Apple Inc.'s anticipated foldable smartphone, suggesting potential new ventures for the company in the evolving tech landscape.