Samsung Electronics evaluating 2nm process performance with Nvidia and Qualcomm
TSMC still holds the advantage in 2nm competitiveness
Foreign media: 'Samsung needs at least 70% yield to be competitive’

Samsung Electronics’ foundry (semiconductor contract manufacturing) division is reportedly conducting process evaluations with companies like Nvidia and Qualcomm to secure orders for its 2-nanometer (nm; one-billionth of a meter) process. While competitor TSMC of Taiwan has the upper hand in the 2nm race thanks to stable yield rates, Samsung is gradually expanding its market presence by absorbing customer demand for diversified manufacturing sources.

Why Are Qualcomm and Nvidia Considering Samsung's 2nm?

According to industry sources on May 15, Samsung Foundry is about to enter the final stage of performance evaluation for its 2nm process for Nvidia’s GPUs and Qualcomm’s application processors (APs). Until recently, Samsung had focused primarily on producing its in-house AP, the Exynos 2600, but is now actively moving to diversify its customer base.

Currently, both Qualcomm and Nvidia are also working with TSMC, the world’s top foundry player, on 2nm process collaborations. The evaluation with Samsung can be seen as part of a strategy to diversify their foundry suppliers. One industry insider noted, “Given the escalating geopolitical risks in the Taiwan Strait, global tech giants can no longer rely solely on TSMC for manufacturing,” adding that “they seem to be boldly betting on Samsung’s potential to improve its 2nm yield to mitigate supply chain instability.”

The high cost of TSMC wafers is also a factor prompting Nvidia and Qualcomm to consider Samsung as an alternative. According to tech outlet The Elec, TSMC’s 2nm wafers are priced up to $30,000 (approx. KRW 42 million) each—about 50% more expensive than those made using the 3nm process.

TSMC’s 2nm Confidence

Nonetheless, in terms of technological maturity and market influence, TSMC still holds the lead. According to Taiwan’s Commercial Times, TSMC has already secured numerous 2nm customers including Nvidia, Qualcomm, Apple, AMD, Broadcom, and MediaTek—all of whom previously used TSMC’s 3nm process.

The outlet also reported that the average defect rate per wafer area for TSMC’s upcoming 2nm production (set to begin in the second half of this year) is now on par with that of the 5nm process and even better than in the pre-production phase of 3nm. This defect rate is one of the key metrics used to assess foundry yield, which directly affects productivity and cost competitiveness. TSMC’s current 2nm yield is believed to exceed the “mass production threshold” of 60%.

The report also listed several products expected to be manufactured with TSMC’s 2nm process: Apple’s A-series processors for the iPhone 18, AMD’s next-generation server CPUs, Nvidia’s upcoming “Rubin” AI chips, and Intel’s high-performance APs. TSMC CEO C.C. Wei has repeatedly emphasized the unprecedented level of customer demand for 2nm foundry services, expressing strong confidence in public forums.

Is Samsung’s Plan to Catch Up with TSMC Realistic?

Experts say Samsung must focus heavily on improving its yield rates to realistically compete with TSMC. In March, Omar Sohail, a journalist from tech site Wccftech, reported that test production of the Exynos 2600 on Samsung’s 2nm Gate-All-Around (GAA) process had a yield of only about 30%. He stressed that mass wafer production hinges on Samsung’s ability to raise yield to “an acceptable level.”

He also noted that in order to start receiving customer orders for the 2nm GAA node, Samsung would need to reach a yield of at least 70%—a figure that surpasses TSMC’s current yield. GAA is an advanced transistor architecture that enhances performance and reduces power consumption. Samsung first introduced it in its 3nm process and has since refined it for its 2nm development. In effect, the success of GAA is key to Samsung’s ability to deliver high-performance and high-yield 2nm chips.

Wccftech predicted that the design of the 2nm GAA node must be finalized by Q3 of this year for the Exynos 2600 to be applied in the upcoming Galaxy S26 series. The report also pointed out, “Samsung had an edge over TSMC when it first officially announced its first-generation 3nm GAA process back in 2022,” but added, “However, there’s also a real risk that history could repeat itself, with Samsung eventually falling behind TSMC again.”

Considering the precedent set during the 3nm race, many analysts believe that overtaking TSMC in the 2nm space will be no easy feat for Samsung.

Russia appoints aide Medinsky as head of delegation for Ukraine talks
Putin claims Zelensky’s term has ended, raises legitimacy concerns
With Putin absent, Trump also says “I won’t go to Istanbul”

In the third year of the devastating war between Ukraine and Russia, an opportunity for high-stakes diplomacy briefly flickered, then faded. The stage was set in Istanbul, Türkiye, where speculation swirled about a possible trilateral summit involving Presidents Vladimir Putin, Volodymyr Zelensky, and Donald Trump. With global eyes on what could have been a diplomatic breakthrough, expectations soared. But just as quickly, reality intervened: Putin, who had initially proposed the talks, announced he would not attend. Trump, whose participation might have added political gravity to the occasion, promptly followed suit. What had been envisioned as a pivotal leader-level summit dissolved into a lower-tier, working-level meeting—yet another missed opportunity for peace in a war that shows no signs of abating.

From Aspirations of Diplomacy to Delegation Diplomacy

The Kremlin’s announcement on May 14 laid bare Russia’s approach: diplomacy, but without direct leadership. A formal directive posted on its official website—signed by President Putin himself—confirmed that Russia would dispatch a high-ranking delegation to the Istanbul negotiations. Leading the group was Vladimir Medinsky, a presidential aide who had served as a negotiator in earlier rounds. He was joined by Deputy Foreign Minister Mikhail Galuzin, Deputy Defense Minister Alexander Fomin, and Chief of the General Staff Igor Kostyukov—a lineup heavy on military and diplomatic weight, but noticeably lacking the president.

This decision was particularly striking, considering that Putin had personally proposed the resumption of talks in Istanbul just days earlier, on May 11. Responding to the proposal, Ukrainian President Volodymyr Zelensky extended an even bolder invitation—calling on Putin to meet face-to-face. He declared in a national briefing, “We are waiting to see who Russia will send, and we will determine Ukraine’s response accordingly.” Reaffirming Ukraine’s diplomatic posture, Zelensky added, “Ukraine is ready for negotiations in all forms and is not afraid of talks.”

His openness was echoed internationally, especially after former U.S. President Donald Trump hinted at his own potential participation. For a brief moment, the prospect of a three-way summit among the U.S., Russia, and Ukraine sparked hope that diplomacy might break the stalemate.

But those hopes quickly unraveled. Once Russia confirmed that Putin would not attend, Trump also withdrew. According to Reuters, unnamed U.S. officials indicated that Trump made his decision shortly after Moscow released its list of delegates—absent its leader. Nonetheless, the United States remains engaged: Secretary of State Marco Rubio and special envoys Steve Witkoff and Keith Kellogg are expected to represent U.S. interests and mediate between the warring sides.

The absence of both Putin and Trump not only diminishes the symbolism of the gathering—it underscores how deeply entrenched the war’s political deadlock has become.

Putin’s Absence: A Calculated Move Rooted in Zelensky’s ‘Illegitimacy’

President Putin’s decision not to participate appears grounded in his longstanding refusal to acknowledge Zelensky’s legitimacy as president. From Moscow’s perspective, Zelensky’s leadership lacks legal authority. Putin has argued that Zelensky’s term expired in 2024 and that his continued governance, under martial law, is a constitutional overreach.

Ukraine had been scheduled to hold a presidential election in March 2024. But citing national emergency and wartime instability, the government invoked martial law—originally declared after Russia’s full-scale invasion in 2022—to cancel the vote. Ukraine’s constitution allows for the extension of parliamentary terms during wartime, but it is silent on presidential term extensions, creating a legal grey zone that Putin has weaponized diplomatically.

"If they truly wanted to hold elections," Putin insisted, "they would have lifted martial law. But they didn’t want to." To him, the continuation of Zelensky’s presidency under emergency powers represents a deliberate move to extend rule without electoral legitimacy.

Further complicating any chance of direct diplomacy is a 2022 Ukrainian law that prohibits negotiations with Putin. The Russian president has cited this statute as proof that any dialogue between himself and Zelensky would not only lack credibility but also violate Ukrainian law. As such, he has used it to justify his refusal to appear at the negotiating table.

For the Kremlin, this legal and political positioning allows Russia to maintain a veneer of engagement—sending high-ranking officials to negotiations—while simultaneously sidestepping real accountability and avoiding symbolic recognition of the Ukrainian government’s authority.

Istanbul: The Symbolism and Stalemate of Peace Deferred

Istanbul is no stranger to wartime diplomacy. Since the outset of the conflict, Ukraine and Russia have met five times, beginning with talks in Gomel, Belarus, and culminating in a high-level negotiation in Istanbul in March 2023. That final meeting held great promise—it was the first time the phrase “peace treaty” was publicly uttered by both sides. The mood was cautiously optimistic. Though planned for two days, the talks concluded in just one, signaling that some degree of compromise had been achieved.

Foreign media reported that tentative terms included:

- Ukraine abandoning its NATO membership ambitions

- Demilitarization of Ukraine

- Binding international security guarantees

- Legal recognition of Russian language rights within Ukraine

However, two explosive issues remained unresolved: recognition of Donbas independence and acceptance of Russian sovereignty over Crimea, annexed in 2014. These sticking points proved fatal to the peace process.

Then came Bucha—a town that would become a symbol of Russian brutality. After Ukrainian forces reclaimed it, the world saw haunting images of massacred civilians, allegedly executed by retreating Russian troops. The atrocity hardened Ukraine’s stance. What little diplomatic space existed collapsed under the weight of grief, anger, and moral outrage.

Now, more than a year later, some of the same figures—Medinsky, Fomin, Kostyukov—return to Istanbul, but this time without their president. The absence of direct leadership and recognition between parties leaves the current talks depleted of transformative potential.

Still, Zelensky’s words resonate. In choosing to remain open to dialogue, even under difficult conditions, Ukraine signals that it has not given up on diplomacy—even when its adversaries refuse to meet on equal terms. Istanbul, once again, becomes a stage for unrealized peace: a place where the war could have turned, but instead circled back to uncertainty.

Semiconductors for Nintendo’s ‘Switch 2’ to Be Manufactured Using Samsung’s 8nm Process
IBM, Hyundai Motor Also Turn to Samsung’s Mature Process Nodes
Lagging Behind: Samsung Still Struggles in the 2nm Advanced Node Race

As the semiconductor industry barrels toward ever-smaller and more powerful process nodes, Samsung Electronics has taken a strategic step back—at least temporarily. The tech giant is intensifying its focus on mature manufacturing processes like 5nm and 8nm, a move driven largely by a wave of global clients prioritizing cost-efficiency over cutting-edge innovation. But as demand for legacy nodes surges, a critical question looms: can Samsung use this momentum to catch up in the high-stakes race for 2nm supremacy?

Nintendo Chooses Samsung’s 8nm Process

One of the most high-profile validations of Samsung’s mature node strategy comes from Nintendo. According to industry sources on May 14, Samsung Foundry has been tapped to produce NVIDIA’s Tegra system-on-chip (SoC) for the upcoming Switch 2 console. Though initially weighing options between Samsung’s 5nm and 8nm nodes, Nintendo ultimately chose the latter, citing lower costs and better yield. Notably, the 8nm process doesn’t require the costly extreme ultraviolet (EUV) lithography used in more advanced nodes, making it an economically sound decision.

Nintendo expects the Switch 2 to exceed 15 million units in initial sales. A gaming industry insider suggests this figure is conservative, pointing out that strong consumer anticipation could drive sales past 20 million units within a year or two. For Samsung Foundry—currently grappling with low utilization rates—the Nintendo deal is more than just a boost in production. It could become a critical foothold in the gaming console market. As one analyst puts it, the deal not only brings immediate benefits but also positions Samsung as a viable alternative for future orders from gaming heavyweights like AMD.

Global Clients Flock to Samsung — Is Cost the Deciding Factor?

Samsung’s mature node foundry services are attracting a growing roster of global clients beyond the gaming world. IBM, for instance, has awarded Samsung the contract to produce chips for its Telum 2 processor and SPEAR AI accelerator—unveiled during the 2024 Hot Chips conference. These chips, built on Samsung’s 5nm process, will power IBM’s next-generation Z-series mainframes. Looking ahead, Hyundai Motor is also set to work with Samsung beginning in 2030 to produce ADAS (Advanced Driver Assistance System) chips for its premium Genesis vehicles, likewise using 5nm technology.

The unifying factor among these diverse clients is cost. Despite TSMC’s undisputed lead in cutting-edge processes, its mass production pricing remains considerably higher than Samsung’s. According to a semiconductor expert, companies that don’t need the absolute latest nodes often find Samsung to be a more cost-effective partner—especially for 5nm and 8nm solutions.

The Competitive Landscape of the 2nm Foundry Market

However, success in mature nodes does not equate to dominance in next-generation technologies. Samsung is still struggling to gain a competitive foothold in the 2nm space, which is rapidly becoming the epicenter of the global foundry race. Current estimates place Samsung’s 2nm yield at just 30–40%, well below the 60% threshold generally accepted as viable for mass production.

Meanwhile, industry leader TSMC has already crossed that critical threshold, boasting over 60% yield on its 2nm process. The company is not only technologically ahead but also commercially secure, having lined up top-tier clients such as Apple, AMD, and Qualcomm. Mass production is set to commence later this year at Fab 20 (P1) in Baoshan, Hsinchu, with expansion planned across four additional plants in Hsinchu and three in Nanzih, Kaohsiung.

Industry experts stress that Samsung must capitalize on its current wave of mature node revenue to fortify its position in advanced nodes. One market analyst cautioned that Chinese foundries, which offer even more aggressive pricing, are catching up fast in the mature segment. If Samsung doesn’t pivot strategically, it risks losing ground not only in the 2nm space but also in the very markets it’s now dominating. Building foundational strength through mature node revenues may be the only way to scale up and mount a credible challenge to TSMC in the advanced node frontier.

Samsung Electronics Acquires Germany's FläktGroup for €1.5 Billion
Last Week: Bought U.S. Premium Audio Brands
With Legal Risks Eased, Will Lee Jae-yong Accelerate Business Expansion?

Samsung Electronics is shifting gears in a dramatic fashion, launching back-to-back billion-dollar acquisitions that signal a decisive return to the global M&A arena. In just over a week, the company has made two bold moves—one in high-end audio and the other in HVAC (heating, ventilation, and air conditioning)—suggesting a broader push to diversify and future-proof its portfolio. With Chairman Lee Jae-yong regaining strategic mobility following a pivotal legal victory, Samsung appears ready to shed its previously cautious stance and embrace a more assertive growth trajectory.

Expanding into HVAC: Samsung Acquires Europe’s FläktGroup

On May 14, Samsung Electronics announced the acquisition of Germany’s FläktGroup, a leading European HVAC systems manufacturer, for €1.5 billion (approximately ₩2.378 trillion or $1.6 billion). Founded in 1918, Fläkt has long dominated the European market, with over a century of expertise and a presence in key infrastructure such as hospitals, museums, airports, terminals, and major global data centers.

Through this acquisition, Samsung gains not only Fläkt’s world-class HVAC technologies but also its high-profile global clients. When combined with Samsung’s own building automation systems, this strategic purchase is expected to yield significant synergies in service reliability and profitability. Roh Tae-moon, acting head of Samsung’s Device Experience (DX) division, emphasized that acquiring Fläkt positions the company to become a comprehensive global HVAC provider. “We plan to nurture the fast-growing HVAC business as a future growth engine,” he said, noting the sector’s rising demand driven by AI infrastructure and data centers.

Big Moves in Audio: Harman Targets Premium Sound Brands

Just days before the Fläkt deal, Samsung made headlines with another major transaction. On May 7, it announced that Harman International—its subsidiary focused on automotive and audio technologies—would acquire the audio division of U.S.-based Masimo Corporation for $3.5 billion (around ₩4.8 trillion). This marks Samsung’s first major M&A initiative since its 2016 acquisition of Harman for $8 billion, and it represents a strategic effort to reinvigorate its lifestyle audio business.

The acquisition brings several iconic premium audio brands under Harman’s wing, including Bowers & Wilkins (B&W), Denon, Marantz, Polk, and Definitive Technology. B&W, founded in the UK in 1966, is a standout in luxury audio, while Denon boasts a 115-year legacy and is credited with inventing the CD player. Marantz has a strong following for its high-end amplifiers and receivers.

Harman intends to integrate Masimo’s audio assets into its lifestyle division, complementing its existing portfolio of brands like Harman Kardon, JBL, and Bang & Olufsen. The acquisition will also enable Harman to strengthen its car audio division by offering differentiated sound experiences across a broader brand spectrum, further cementing its role as a top-tier supplier for global automotive clients.

Lee Jae-yong's Comeback and Samsung's M&A War Chest

Samsung’s sudden burst of M&A activity is widely seen as a signal of Chairman Lee Jae-yong’s return to active leadership. For years, the company faced criticism for its reluctance to pursue M&As, attributed in large part to Lee’s prolonged legal battles following the death of his father, the late Chairman Lee Kun-hee. That period of stagnation appears to be ending.

Though Lee remains on trial for alleged accounting fraud and improper corporate mergers, his acquittal in the appellate court on February 3 in the Cheil Industries–Samsung C&T case has significantly eased legal constraints. Market insiders believe this legal win has enabled Lee to resume making bold strategic decisions. “Samsung is reportedly actively scouting targets in AI, robotics, and automotive electronics,” one source noted, emphasizing that the company aims to look beyond traditional sectors like semiconductors, smartphones, and consumer electronics to achieve a new level of global scale.

Fueling this momentum is Samsung’s substantial cash reserve. As of the end of September last year, the company held around ₩104 trillion (approximately $76 billion USD) in liquid assets—₩43.1 trillion in cash and equivalents and ₩60.6 trillion in short-term financial instruments. This marks a more than ₩10 trillion increase from the previous year, even amid heightened capital expenditure in the semiconductor sector. With such deep financial resources, Samsung is now well-positioned to continue making bold, transformative acquisitions across multiple industries.

U.S. Biden Administration Scraps ‘AI Expansion Rules’
Regulatory Easing Benefits Both the Middle East and the U.S.
“Big Deals Are Pouring In” — U.S. Big Tech Companies Rejoice

The administration of U.S. President Donald Trump is set to overhaul the artificial intelligence (AI) chip export restrictions previously implemented by the Biden administration. The revised policy aims to ease regulations on AI chip exports to Middle Eastern countries, with the dual goals of attracting petrodollars and curbing China’s influence in local markets. In fact, it has been confirmed that several major U.S. tech companies—including NVIDIA and AMD—have already secured a series of major deals in the Middle East, seizing this regulatory shift as a business opportunity.

U.S. Abolishes Country-Based AI Chip Export Restrictions

WASHINGTON, D.C. — May 14 (local time) — The U.S. Department of Commerce has officially scrapped its country-tiered restrictions on AI chip exports, signaling a major shift in America’s semiconductor export strategy. According to a statement reported by the Wall Street Journal, the move repeals the Biden-era "AI dissemination rule," which had divided countries into three tiers to control access to advanced U.S. AI chips.

The original regulation, enacted under President Biden, classified countries into:

Tier 1 ("Inner Circle"): Including the Five Eyes nations (UK, Canada, Australia, New Zealand), key Western European allies, Japan, South Korea, and Taiwan — these nations faced no restrictions.

Tier 2: Middle-ground countries, largely in Latin America, the Middle East, and Southeast Asia, were allowed to purchase limited quantities.

Tier 3: Blacklisted countries such as China, North Korea, Iran, Russia, and Syria were completely barred from access.

The Department of Commerce explained that the tiered system risked alienating dozens of countries relegated to Tier 2. Officials added that a new, more nuanced framework would be announced in the coming months. Analysts expect the Trump administration to favor a transaction-based, rather than nation-based, approach.

Strategic Shift Amid Middle East Tour

News of the repeal came just hours after President Donald Trump attended the U.S.-Saudi Investment Forum during his Middle East tour. David Sacks, the administration’s AI and cryptocurrency advisor, stated that the original regulation “hindered the diffusion of U.S. technology to trusted allies,” singling out Saudi Arabia as a “reliable partner.”

For Middle Eastern nations like Saudi Arabia and the UAE — traditionally limited to 1,700 AI chips annually under the old rule — this marks a breakthrough. These countries have been trying to pivot their economies from oil dependency to high-tech growth, often turning to Chinese firms when blocked from purchasing from U.S. giants like Nvidia. Some Chinese companies reportedly funneled restricted chips to the Middle East to circumvent export bans, drawing Washington’s concern.

With restrictions lifted, the U.S. gains twofold: access to Middle Eastern petro-capital and a strategic edge over China's encroaching AI ambitions.

Big Tech Sees a Windfall

U.S. tech giants are already reaping the benefits. On May 13, Nvidia announced a landmark $10 billion deal to supply 18,000 of its cutting-edge GB300 chips to Saudi AI firm Humane for a 500-megawatt mega-data center — five times the size of major U.S. installations operated by Google and Microsoft. Over the next five years, Nvidia is expected to supply hundreds of thousands of chips.

Competitor AMD has also joined the initiative, providing chips and software, while Cisco is delivering network and security infrastructure to support Humane’s ambitious buildout.

Elsewhere, Google-backed Saudi VC STV launched a $100 million fund aimed at seeding MENA-region AI startups, though Google’s specific contribution remains undisclosed.

Elon Musk has also moved quickly. On May 12, he offered Saudi Arabia his Starlink satellite internet service and proposed deploying Tesla’s autonomous robotaxi fleet across the kingdom. Musk also introduced the latest version of Tesla's humanoid robot “Optimus” to President Trump and Saudi Crown Prince Mohammed bin Salman in a high-profile demonstration.

The policy shift marks a dramatic reorientation in U.S. semiconductor diplomacy — away from rigid geopolitics and toward dynamic strategic alignment. By embracing the Middle East's digital ambitions, the U.S. not only undercuts China's influence but also unlocks a new frontier for American tech dominance.

As Washington prepares to unveil its new AI export policy, the industry — and the world — will be watching closely to see how this realignment reshapes the future of artificial intelligence.

Plan to establish a large shipyard in Tuticorin, Tamil Nadu
Korean shipbuilders receive business participation love calls
Indian government offers investment incentives aiming to become the world’s 5th largest shipbuilding power

Indian government secures sites to create large-scale shipbuilding and ship repair clusters, kicking off a full-scale shipbuilding industry development strategy. Especially, by fostering cooperation with Korean shipbuilders like HD Hyundai Heavy Industries and Hanwha Ocean, it is seen as strengthening the revival of the "K-Shipbuilding Renaissance."

India requests shipbuilding cooperation with Korea, sends love calls to HD Hyundai

On the 13th (local time), India’s leading economic paper The Economic Times reported, quoting Indian government officials, that the government has confirmed large-scale sites for building shipyards and ship repair facilities in strategic coastal areas such as Tamil Nadu and Andhra Pradesh in the south, and Gujarat in the west. It is expected that joint ventures between global shipbuilders, including HD Hyundai Heavy Industries, and local companies will be established in these regions.

The most notable area is the port city of Tuticorin in Tamil Nadu. HD Hyundai Heavy Industries is reportedly in final negotiations with India’s state-run Cochin Shipyard Limited (CSL) to establish a joint shipyard for building large vessels including ultra-large crude carriers (VLCCs), with investments expected to total around 100 billion rupees (approximately 1.6 trillion KRW).

A source explained, “HD Hyundai Heavy Industries, which already owns shipyards in Korea, is very eager to build a shipyard in India to meet rising demand. They have visited Tuticorin and Kudalur in Tamil Nadu and met with executives from Larsen & Toubro (L&T) to seek partnerships.”

Hanwha Ocean also considering joint venture establishment

This announcement comes at a time when the Indian Ministry of Finance’s Expenditure Finance Committee (EFC) finalized 250 billion rupees (approx. 4.15 trillion KRW) in the 2025–2026 budget, alongside an additional 180 billion rupees (approx. 2.97 trillion KRW) in shipbuilding support measures. These policies aim to provide capital support for building shipbuilding infrastructure, including world-class port facilities.

A senior Indian government official said, “HD Hyundai Heavy Industries and Cochin Shipyard are deciding on the site,” adding that “Tuticorin in Tamil Nadu is expected to be the final location for this large infrastructure project.” Andhra Pradesh and Gujarat have also been designated as strategic hubs. India is currently working hard to attract investments from around the world. The Indian side explained that global shipbuilding companies based in the Netherlands, France, and the Middle East have shown interest in establishing local manufacturing facilities.

In particular, Gujarat is developing a shipyard site near Kandla Port covering about 2,000 acres (approx. 8.1 million square meters) for lease to the private sector. Korean Marine Technology (KOMAC) is involved in this project either directly or indirectly. KOMAC signed an MOU with the Indian company Accurate Industrial Controls, which submitted a sole bid for the Kandla shipyard construction, to provide shipbuilding cluster design consulting and first vessel design.

Hanwha Ocean is also reportedly discussing joint ventures focused on potential investment sites near Kandla Port in Gujarat. Last December, Shri T.K. Ramachandran, Deputy Minister of India’s Ports, Shipping, and Waterways, and Madhu Nair, CEO of Cochin Shipyard, visited Korea, meeting successively with HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries to explore cooperation possibilities.

Favorable winds for K-Shipbuilding

The Indian government has set a goal to rise from holding less than 1% of the global shipbuilding market share currently to becoming one of the top 10 shipbuilding nations by 2030, and one of the top 5 by 2047. To revive the shipbuilding industry, India has devised long-term strategies and offers various incentives. These include annual shipbuilding subsidies of up to 30%, tariff reductions on imported materials, and long-term financial support funds, all designed to foster industry growth. Based on these, India aims to become a global shipbuilding powerhouse.

This is good news for the Korean shipbuilding industry, which has been actively expanding its activities in line with the Trump administration’s focus on cooperation in shipbuilding. India’s cheap labor is seen as a way to prevent Korea’s high labor costs while ensuring quick delivery capabilities.

Previously, on November 7, before his inauguration, then-President-elect Donald Trump said during a call with President Yoon Suk-yeol, “The U.S. shipbuilding industry needs Korea’s help and cooperation.” The presidential office said, “(Trump) knows Korea’s world-class capabilities in warship and vessel construction and believes close cooperation is necessary not only for vessel exports but also for maintenance and repairs, hoping to discuss this more concretely with our president.”

Following this, the U.S. has started groundwork for actual cooperation in shipbuilding. U.S. senators have proposed bills to allow allied countries like Korea to build naval vessels. According to foreign media, Republican Senators Mike Lee and John Curtis jointly introduced the “Navy Readiness Guarantee Act” and the “Coast Guard Readiness Guarantee Act” on the 5th, which would amend the Burns-Toffeyson Act—a law that has blocked foreign companies from building or repairing U.S. naval ships for 60 years. The industry views this as a follow-up action to Trump’s request for cooperation with Korea’s shipbuilding sector.

U.S. companies resume operations in Chinese factories amid tariff truce
Shipping restarts, rush to secure Chinese-made inventory
90 days seen as tight window — some predict no major import surge

As the U.S. and China drastically lower the triple-digit tariffs they had imposed on each other, trade between the two countries is expected to gain breathing room. Some U.S. companies are quickly resuming production at Chinese factories and moving to ship products, reacting swiftly to the tariff war "truce."

Trump & Xi Announce 90-Day Tariff "Truce"

According to Reuters and other international media on the 13th (local time), the U.S. and China are seeing signs of trade resumption after announcing significant tariff reductions. On the 12th, the two countries declared that they would lower tariffs on each other for 90 days. Per their joint statement, the U.S. reduced tariffs on Chinese goods from 145% to 30%, while China cut its retaliatory tariffs on U.S. goods from 125% to 10%.

In the case of the U.S., it retained the 20% tariff imposed on Chinese fentanyl and a base mutual tariff of 10%. China also maintained a minimal 10% reciprocal tariff. Therefore, apart from the fentanyl-related tariff, both countries are effectively maintaining mutual tariffs at 10%. These lowered tariffs will be in effect for 90 days starting on the 14th.

The unexpected scale of the reductions stems from shared fears that continued high-stakes confrontation could cause irreparable economic damage to both sides. U.S. Treasury Secretary Scott Besant said, “Through this negotiation, we concluded that the U.S. and China have shared interests,” and added, “No one wants decoupling.”

U.S. Also Slashes Tariffs on Small Parcels from China

Along with the truce, the U.S. will also drastically reduce tariffs on small imports from China. On the 12th, the White House announced it would lower the tariff rate on small parcels under $800 from China from 120% to 54%, effective from the 14th. While the fixed fee per parcel remains at $100, the previously planned increase to $200 starting next month has been canceled.

As a result, for parcels under $800 shipped from China, either 54% of the product price will be paid as a tariff or a fixed $100 fee will apply. Previously, on April 3, President Trump signed an executive order to repeal the "de minimis" exemption on sub-$800 Chinese goods and impose a 30% tariff starting May 2. Following that, tariffs on small Chinese parcels rose to 90%, then 120%, and were applied from May 2. The fixed fee alternative also rose from $25 to $100 per parcel, and was set to increase to $200 next month before the plan was scrapped.

U.S. Companies Rush to Reimport Chinese Goods

The substantial rollback of high tariffs has prompted U.S. businesses to act quickly. According to The New York Times (NYT), Basic Fun, the U.S. toy maker behind Tonka trucks, halted all Chinese shipments in recent weeks and held goods at factories until shipments resumed immediately on the 12th.

CEO Jay Foreman of Basic Fun said, “I was on the phone with partners from the early morning, asking them to resume shipments. Everything is moving again—calling Chinese logistics firms, setting pickup schedules, and booking cargo ships.”

Monty Sharma, CEO of massage device manufacturer Therabody, also resumed production at Chinese factories. “Despite costs increasing by about 30%, I’ve never been this happy in my 40 years in this business,” he said.

However, there’s also caution. David Chitayat, CEO of OEM company Genimex, said U.S. firms are likely to rush to bring Chinese factory stock into the U.S. The 90-day window could end with tariffs reverting or talks falling through, prompting companies to secure inventory while they can. “Tariffs still matter, but most brands can manage,” he noted, adding that while companies may absorb higher costs, consumer prices are likely to rise too—by 5–10% if tariffs increase by 30%.

The National Retail Federation (NRF) also predicts short-term relief for retailers who may stock up for the back-to-school and holiday seasons. However, firms that had shut down operations due to tariff spikes must first restart production. Whether they can manufacture and ship within 90 days is the key issue. Outdoor gear maker Tarptent is reviewing whether it can resume Chinese orders, but producing tents using U.S. fabrics shipped to China and completing the process within 90 days seems unlikely.

There’s also criticism that even the reduced 30% tariff remains high. If shipping demand for Chinese goods spikes, freight costs could rise or deliveries may be delayed. Gene Seroka, Executive Director of the Port of Los Angeles, a key U.S. trade hub, said, “Given how short the window is, there likely won’t be a dramatic import surge in the next few weeks. In our industry, 90 days is not a long time.”