Lee Jae-yong Heads to Washington to Support Tariff Talks... Will He Play the 'Semiconductor Card'? (Comprehensive)

First Overseas Trip After Legal Risks Cleared
Seeking Global Cooperation and New Business Opportunities
Potential Government Support in Korea-U.S. Tariff Negotiations
Attention on Possible 'Semiconductor Investment and Cooperation' Card
$23 Billion Foundry Deal with Tesla Adds Leverage
Successive Visits to the U.S. by Business Leaders... Hanwha's Kim Dongkwan Also Heads to America

Lee Jae-yong, Chairman of Samsung Electronics, embarked on a business trip to the United States just 12 days after being acquitted by the Supreme Court, drawing significant attention from the business community regarding the background and potential outcomes of his visit. With the official implementation of the U.S. reciprocal tariffs just three days away and the Korean government making every effort in negotiations with the United States, there is growing speculation that Chairman Lee may provide indirect support to the Korean government during his stay in the U.S.

Samsung Electronics Chairman Jay Y Lee is departing for Washington on the 29th through the Seoul Gimpo Business Aviation Center (SGBAC) in Gangseo-gu. Photo by Yonhap News

On July 29, at around 3:50 PM, Chairman Lee arrived at Gimpo Airport and boarded a flight bound for Washington, D.C. He did not respond to any questions from reporters at the airport, only offering a brief greeting of "Hello" before heading to the departure gate.

This trip to the United States marks Chairman Lee's first overseas schedule after being freed from legal restrictions. While there had been speculation that he might attend the Google Camp, a global tech CEO gathering held in Sicily, Italy, at the end of this month, he chose to visit Washington first. Prior to his departure, on July 24, he had a private dinner with President Lee Jaemyung. It is reported that during this meeting, they discussed tariff negotiations and strategies for investment in the United States. There is also speculation that this dinner may have led to his decision to travel to the U.S.

Chairman Lee is expected to focus primarily on discussing global business cooperation with major partners in the U.S. and seeking new business opportunities. At the same time, there is a strong possibility that he will play a key role as a "hidden card" in the ongoing tariff negotiations between the Korean government and the Trump administration, handling related schedules. If Chairman Lee provides support in the tariff talks, semiconductors are considered a likely bargaining chip. He may propose to the Trump administration an increase in the scale of planned semiconductor investments in the U.S. and the promotion of advanced artificial intelligence (AI) semiconductor technology cooperation with American companies.

Samsung Electronics operates a foundry (semiconductor contract manufacturing) plant in Austin, Texas, providing favorable conditions for collaboration with local companies. Another foundry plant is under construction in Taylor, Texas, with operations scheduled to begin next year. Samsung has also announced plans to invest over $37 billion (approximately 54 trillion won) in establishing a local semiconductor production base in the U.S. by 2030. Depending on the results of Chairman Lee's trip, this investment amount could increase further.

The $22.8 billion foundry supply contract with Tesla, announced the previous day, is expected to strengthen Chairman Lee's position in meetings with local U.S. stakeholders. This is the largest supply contract ever signed by Samsung Electronics Foundry and is seen as recognition of its technological prowess. Under this contract, Samsung Electronics Foundry will begin producing Tesla's next-generation AI chip, the AI6, at the Taylor plant starting next year. Elon Musk, CEO of Tesla, commented after the contract took effect, "The $16.5 billion (about 22.8 trillion won) figure is just a minimum. Actual production volume will likely be several times higher. The strategic importance of this cannot be overstated."

Within the business community, there is growing attention on whether the visits to the U.S. by major corporate leaders will bolster the final stages of Korea-U.S. negotiations. Just a day before Chairman Lee's departure, Kim Dongkwan, Vice Chairman of Hanwha Group, also traveled to the U.S. Vice Chairman Kim is expected to join the Korean negotiation team to help advance the "Make American Shipbuilding Great Again (MASGA)" project, a shipbuilding industry cooperation initiative proposed by the Korean government to the U.S. side.