Inside one of South Korea's oldest semiconductor research institutes, the cleanrooms and workshops are calm and immaculate, but outside the Seoul National University campus, a chip storm is brewing.

Last month, Washington announced a national security probe into imports of semiconductor technology, which could put the industry in the crosshairs of President Donald Trump's trade bazooka and inflict potentially devastating levies.

For chipmaking powerhouses South Korea and Taiwan, the consequences could be enormous.

South Korea is home to Samsung Electronics and SK hynix, while Taiwan hosts the world's largest contract chipmaker, TSMC. Collectively, they produce a significant chunk of high-end chips that have become the lifeblood of the global economy, powering everything from smartphones to missiles.

Taiwan exported $7.4 billion worth of semiconductors to the United States in 2024, while South Korea's exports surged to $10.7 billion, a historic high.

Experts say the spectre of looming tariffs has spurred stockpiling, with fears levies will drive up consumer prices and hurt........

© International Business Times