S.Korea, Taiwan chipmakers express concern about US subsidy criteria

by Ben Blanchard and Joyce Lee

SEOUL / TAIPEI( Reuters )- South Korean President Yoon Suk Yeol expressed concern over the requirements for new U.S. semiconductor subsidies on Thursday. Samsung Electronics Co Ltd. and SK Hynix Inc. share this concern.

Three business sources claimed that the application process itself could reveal private business strategy, and that conditions include sharing unnecessary profit with the U.S. government.

Yoon requested that the U.S. public take into account businesses’ concerns about an” excessive level of material delivery” during a meeting with United States Trade Representative Katherine Tai in Seoul, according to the national work.

A$ 52 billion pool of study and manufacturing money designated for the US’s so-called CHIPS Act, for which the Commerce Department released guidelines and designs this month, did provide grants.

In order to build an advanced chip packaging factory, the parent company of SK Hynix plans to invest$ 15 billion in the U.S. chip market. It has also stated that it is thinking about applying for funding. Samsung has stated that it is reviewing the regulations and is constructing a chip plant in Texas that could cost up to$ 25 billion.

Three Asian device sources told Reuters that this was tantamount to disclosing business strategy, but funding applications may require extensive cost structure information as well as projected wafer yields, utilisation rates, and price changes.

All of this information is private. The most crucial component of chips is price structure. One of the sources, whose identity was withheld due to the subject’s awareness, said that experts would be able to quickly determine our system.

The chairman of Taiwan Semiconductor Manufacturing Co Ltd( TSMC ), the largest contract chipmaker in the world, stated that it shared concerns while speaking at an industry event in Taiwan.

” We are always talking to them about this.” There are some terms that are ineligible. We’re hoping they can be changed to prevent any significant effects. We will keep in touch with the U.S. authority, Mark Liu told investigators.

A different place in Arizona is receiving$ 40 billion from TSMC.

Subsidy programs will be accepted by the U.S. Department of Commerce starting on March 31 for cutting-edge device facilities and for current-generation, mature-node, and back-end production facilities beginning on June 26.

To improve supply chain protection while boosting the economy, South Korea’s parliament also approved a bill on Thursday offering significant tax breaks to corporate industry, including the semiconductor business.

The government announced a 550 trillion won($ 424 billion ) private-sector investment plan to keep high-tech industry competitive while other nations constantly bolster theirs in the same month that the agreement was granted.

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( Jacqueline Wong, Elaine Hardcastle, Christopher Cushing, and Joyce Lee and Ben Blanchard provided additional reporting, as well as Heekyong Yang in Seoul. )

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