Samsung, Apple, Hyundai lead in new trade

On August 7, U.S. Trade Representative Jamieson Greer wrote in a New York Times op-ed that “a new economic order has been solidified in Turnberry.” The tariff agreement reached between the U.S. and the European Union on June 27 in the small Scottish town marks a significant shift in global trade. This new framework, centered on U.S.-led bilateral agreements, is set to replace the multilateral trade system established by the World Trade Organization (WTO), which has dominated for 30 years.

The swift transformation in global trade dynamics is pushing South Korean export companies to expedite joint ventures with U.S. firms. In this context, the quick actions of South Korea’s major corporations are noteworthy. On July 6, Samsung Electronics won a contract to produce advanced semiconductor chips for Apple’s upcoming iPhone. These high-performance “image sensors” act as the smartphone's "eyes," converting light into digital signals. Until now, Sony had dominated this field, holding the top position.

Last month, Samsung struck a $16.5 billion deal with U.S. electric vehicle manufacturer Tesla to produce artificial intelligence (AI) chips. The next-generation AI6 chips, which function as the brain for autonomous vehicles and robots, are currently produced by Taiwan’s TSMC.

These accomplishments were made possible by Samsung’s outstanding semiconductor design and production capabilities, along with its advanced manufacturing facilities in the U.S. Apple’s chips will be produced at Samsung’s Austin, Texas, facility, while Tesla’s chips will be made at a new facility under construction in Taylor, Texas. Both Apple and Tesla, needing to boost local production to comply with the Trump administration’s tariff policies and support domestic manufacturing, selected Samsung for its established local supply capabilities.

Hyundai Motor Group has also teamed up with General Motors (GM) to jointly develop platforms for five vehicle models to be sold in North and Latin America. With the growing risk of reduced profitability due to tariffs, this collaboration will help both companies significantly cut production costs. Hyundai plans to expand its footprint in the U.S. pickup truck market, which it has previously underexploited, while GM aims to bolster its hybrid vehicle technology.

In the swiftly changing "Turnberry system" shaped by the Trump administration, maintaining South Korea’s standing as the world’s sixth-largest exporter will be a challenge. South Korean companies must broaden their global outlooks and take bold steps, breaking away from traditional approaches to align with the new trade order.