SEOUL, March 30 (Reuters) – Criteria to qualify for new U.S. semiconductor subsidies could be “burdensome” for companies such as Samsung Electronics Co Ltd 005930.KS and SK Hynix Inc 000660.KS, South Korea’s trade minister said on Thursday.
Subsidies would come from a $52 billion pool of research and manufacturing funds earmarked under the United States’ so-called CHIPS Act, for which the Commerce Department announced guides and templates this month.
SK Hynix parent SK Group plans to invest $15 billion in the U.S. chip sector, including to build an advanced chip packaging factory, and has said it is considering applying for funding. Samsung is building a chip plant in Texas that could cost over $25 billion and has said it is reviewing the guidelines.
However, funding applications may require detailed cost structure information as well as projected wafer yields, utilisation rates and price changes, which three Korean chip sources told Reuters was akin to revealing corporate strategy.
“All of this is confidential information. The most important thing in chips is cost structure. Experts will be able to tell our strategy at a glance,” said one of the sources, who declined to be identified due to the sensitivity of the matter.
Ahn’s comment came from a meeting with United States Trade Representative Katherine Tai in South Korea, a leading chipmaking country and major investor in the U.S. chip sector.
The U.S. Department of Commerce will accept subsidy applications for leading-edge chip facilities from March 31, and for current-generation, mature-node and back-end production facilities from June 26.
(Reporting by Joyce Lee; Editing by Christopher Cushing)
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