South Korea requests US review China chip subsidy rule.

South Korea requests US review China chip subsidy rule.
Image: Reuters

According to a public filing in the United States, South Korea has asked Washington to reconsider its criteria for new semiconductor subsidies in light of China’s chip investment restrictions.

In March, the United States Commerce Department proposed rules to deny China and other countries access to $52 billion in CHIPS Act funds for semiconductor manufacturing and research.

South Korea, a major chipmaker and investor in the US chip sector, has asked the US to reconsider the rule that prohibits recipients of US funding from expanding their operations in such countries beyond 5% of existing capacity.

“The Republic of Korea believes that ‘guardrail provisions’ should not be implemented in a manner that imposes an unreasonable burden on companies investing in the United States,” South Korea stated in its official name.

The filing did not specify, but according to Yonhap, Seoul requested a 10% increase.

The US claims that the incentives will reestablish America’s leadership in semiconductor manufacturing, boost employment, and ensure economic and national security.

The world’s top memory chip manufacturers, Samsung and SK Hynix, have invested billions of dollars in Chinese chip factories.

Samsung may invest $25 billion in a chip plant in Texas.

According to a filing, Samsung Electronics Co Ltd requested clarification of the proposed rule to ensure that U.S. chip-making investments were “not unduly and unintentionally restricted.”

SK Hynix Inc. also commented, but without providing any specifics.

Its parent company, SK Group, is considering applying for funding to invest $15 billion in the chip sector in the United States, including an advanced chip packaging factory.

“Potential CHIPS Act funding recipients have numerous existing legacy facilities in China,” according to the Semiconductor Industry Association.

“These companies must keep these facilities commercially viable in order to protect their investments.

The United Auto Workers (UAW) union believes that applicants for funding should be disqualified if they refuse to join a union.

“The U.S. government should not be in the business of funding union-busting employers,” it said in a filing on Tuesday.

The Commerce Department accepted subsidy applications for cutting-edge chip facilities in March. On June 26, “current-generation, mature-node, and back-end” production facilities can apply.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

Have a tip we should know?

Most Read

  1. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    3 years ago
  2. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    3 years ago
  3. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    3 years ago
    Women’s Demand for Shapewear – the big Trends
    3 years ago
    Valentino Launches its Cosmetics Line
    3 years ago
  6. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    3 years ago
  7. Health
    UK Offers Aid Amid Surging COVID-19 Cases in India
    3 years ago
  8. Sports
    Thousands of fans welcome Charlton funeral cortege at Old Trafford
    7 months ago
  9. News
    Brit left fighting for life after train derails in Argentinia
    7 months ago
    Dubai faces down airline rivals with $50 bln jet orders
    7 months ago
  11. Sunak
    UK’s Sunak brings back Cameron, sacks Braverman
    7 months ago
  12. Sports
    Man United’s Hojlund, Eriksen withdrawn from Denmark team duty
    7 months ago
  13. Health
    Autumn Sneezing Syndrome is on the rise… here’s what you can do
    7 months ago
  14. Canada
    Canada beat Italy to win Billie Jean King Cup for first time
    7 months ago

Follow @rushhourdaily: