23 hours Ago By Korea Bizwire
Amid Tariff Uncertainty, Samsung Bolsters Global Supply Chain Flexibility (Image created by ChatGPT) SEOUL, April 30 (Korea Bizwire) — Samsung Electronics is weighing production shifts and bolstering its risk management strategies in response to rising tariff uncertainties stemming from former President Donald Trump’s proposed global trade policies, company executives said during a quarterly earnings call Tuesday. Park Soon-chul, Samsung’s Chief Financial Officer, said the company is closely monitoring international trade policies and geopolitical tensions as it seeks to minimize negative impacts on its operations. “We are working to swiftly adapt by leveraging our global production and customer management infrastructure,” he stated.
The Biden administration currently imposes a flat 10% “universal tariff” on all imports, while separately reviewing item-specific tariffs, particularly on semiconductors. Although major Samsung products such as smartphones and tablets are not yet subject to additional tariffs, Park warned that investigations into individual product categories are ongoing, creating an unpredictable outlook. Tariff Turbulence: Samsung Plans Production Shifts to Dodge U.
S. Trade Pressures. The image shows Galaxy S25 Samsung is preparing contingency plans that include relocating portions of TV and home appliance production to alternative global sites.
The company is also planning to increase the share of premium models in key product lines to cushion potential price hikes. In the mobile division, Park noted that any new tariffs on semiconductor derivatives could raise component costs. To maintain profitability, Samsung intends to focus on expanding sales of its flagship and edge-series smartphones.
Similarly, the video display (VD) and digital appliances (DA) units are shifting toward high-end products and production flexibility to avoid tariff exposure. The company’s semiconductor division is on alert as it awaits clearer signals from U.S.
policymakers. “We are continuously reviewing multiple scenarios, including the implications of U.S.
semiconductor tariff policies,” Park said. Samsung Rethinks Global Strategy as U.S.
Tariff Threats Cloud Outlook. Image shows Samsung Electronics’ Seocho HQ In memory chips, uncertainty is expected to intensify in the second half of 2025. Kim Jae-joon, executive vice president of the memory division, said that while AI-driven demand remains robust and client inventories are normalizing, changes in trade policy and semiconductor export controls could cloud the outlook.
“Some customers are pulling in orders early in the second quarter to preempt future tariffs,” Kim said, warning that this behavior may weigh on demand later in the year. “Monitoring future tariff announcements and supply capacity will be key to forecasting demand.” Samsung is also investing aggressively in future technologies.
The company spent a record 35 trillion won on research and development in 2024 and increased R&D spending by 16% year-over-year to 9 trillion won in the first quarter of 2025. It is also pursuing mergers and acquisitions to strengthen future growth, including in robotics and artificial intelligence, where it is ramping up both in-house development and external partnerships. First-quarter capital expenditures totaled 12 trillion won, down 5.
8 trillion won from the previous quarter. Of that, 10.9 trillion won was allocated to semiconductors and 500 billion won to displays.
“Even amid heightened uncertainty, we are maintaining stable operations while investing for the future,” Park said. “We will continue to seek M&A opportunities that enhance shareholder value and will promptly communicate any tangible developments.” Kevin Lee (kevinlee@koreabizwire.
com).
