Samsung Electronics and SK Hynix are poised to benefit from Washington's reported decision to allow Nvidia to resume exports of its lower-tier H20 artificial intelligence chips to China, which contain the South Korean companies' high-bandwidth memory (HBM) components.
15% US revenue levy raises profitability concerns
Yet the relief is tempered by concerns over profitability after Nvidia and rival Advanced Micro Devices agreed to pay the US government 15% of their China-derived semiconductor revenue in exchange for export licenses. Industry executives in Seoul warn that such costs could cascade down the supply chain, pressuring prices for Korean suppliers.
Bloomberg and Reuters, citing the Financial Times, said the Trump administration reached a deal with Nvidia and AMD to reopen the Chinese market for certain AI chips. The decision could boost sales for HBM suppliers but also introduces a fresh challenge.
South Korean memory makers eye gains from rising HBM demand
Samsung is understood to be the primary supplier of fourth-generation HBM3 for the H20, while SK Hynix began providing its fifth-generation HBM3E for the model in early 2025. With Samsung's HBM3E still awaiting Nvidia's quality certification, its HBM3 shipments remain strategically vital. According to Aju Business Daily, demand for the H20 from Chinese companies such as ByteDance and Tencent is climbing, likely driving higher HBM volumes.
The 15% revenue remittance will inevitably erode margins for US chipmakers and could be passed along to component suppliers. Some Korean industry sources say the net effect will depend on whether expanded HBM sales can offset potential price cuts.
Market watchers note that Samsung may be offering HBM3 for the H20 at below prevailing market rates, while SK Hynix could sharply increase prices for its 12-layer stack products. Bernstein estimates Nvidia could ship about 1.5 million H20 units to China in 2025, generating roughly US$23 billion in revenue. Given that HBM prices are often set through contracts, analysts say securing market share may ultimately matter more than near-term pricing concessions.
Article edited by Jack Wu
