TECHNOLOGY: Samsung may build US plant due to threats from Trump

Seoul — Samsung Electronics may build a US plant for its home appliances business, a person familiar with the matter said; Samsung is the latest global firm to consider a response to criticism about imports from US President Donald Trump.

Specifics, such as the amount the electronics giant might invest and where the new base might be located, have yet to be decided, said the person, declining to be identified due to lack of authorisation to speak publicly on the matter.

The new US administration has threatened an import tax while Trump has attacked some of the world’s biggest companies for manufacturing abroad for US consumers, stoking much alarm and triggering a rash of promises to invest more in the US.

 

Samsung said that the company continues to "evaluate new investment needs" in the US but did not comment on specific plans. In November, prior to Trump’s election, Samsung said it would invest more than $1bn in its chip plant in Austin, Texas by end-June.
To date, South Korean firms have not been singled out about imports but even so, some have embarked on pre-emptive moves to ward off criticism. Hyundai said last month that it plans to lift US investment by 50% to $3.1bn over five years.

LG also announced in January that it will decide on whether to build a manufacturing base in the US within the first half of the year and warned of risks from the Trump administration’s trade policies. LG is considering Tennessee as a location for a new home appliances and television plant as part of its deliberations, a person familiar with the matter said.

"This is something that has been under consideration for years at LG, but the current political situation is simply accelerating that timeline for a decision," the person said. An LG spokesperson declined to comment.

Reuters