US semiconductor subsidy requirements might be a “burden,” according to South Korea. Three industry insiders said that the application procedure itself may reveal private business strategies and that conditions include sharing excess earnings with the US government.
A semiconductor is a substance with electrical conductivity between that of a conductor and that of an insulator. It is an important component of electrical gadgets and plays an important part in contemporary technology. Semiconductors are utilized in a broad variety of devices, including transistors, diodes, solar cells, and integrated circuits.
One of the distinguishing features of a semiconductor is its capacity to be changed by the addition of impurities, a process known as doping. This enables the regulation of electrical conductivity and the fabrication of several kinds of semiconductors, such as p-type and n-type.
The advancement of semiconductor technology has had a huge influence on contemporary civilization, allowing for the construction of smaller, quicker, and more efficient electronic gadgets. The semiconductor business is a key contributor to the world economy, with market leaders including Intel, Samsung, and TSMC.
Yet, the fabrication of semiconductors has substantial environmental repercussions, with the manufacturing process requiring vast quantities of energy and creating hazardous waste.
Attempts to enhance the sustainability of semiconductor manufacturing are continuing, with efforts like green manufacturing and recycling programs being created to lessen the environmental effect of this critical technology.
For firms like Samsung Electronics Co Ltd and SK Hynix Inc, the requirements to be eligible for new U.S. semiconductor subsidies might be “burdensome,” according to South Korea’s trade minister on Thursday.
Three industry insiders said that the application procedure itself may reveal private business strategies and that conditions include sharing excess earnings with the US government.
Subsidies would come from a $52 billion pool of research and manufacturing funding designated under the so-called CHIPS Act of the United States, for which the Commerce Department this month unveiled guidelines and templates.
The company that owns SK Hynix, SK Group, intends to spend $15 billion in the U.S. chip industry, including the construction of a cutting-edge chip packaging facility and has said that it is thinking about applying for financing. In Texas, Samsung is constructing a semiconductor factory that might cost more than $25 billion, and the company has said that it is now studying the regulations.
A comprehensive cost structure predicted wafer yields, utilization rates, and pricing adjustments may be required for financing applications, according to three Korean chip insiders who told Reuters that this is comparable to disclosing the business strategy.
Specialists will be able to determine our approach at a glance, according to one of the individuals, who refused to be named owing to the nature of the material.
“All of this is proprietary information. The most significant factor in chips is cost structure,” the source added.
According to a statement released on Thursday by the South Korean Trade Minister Ahn Duk-Geun, the United States’ subsidy requirements should take into account the views of the South Korean government and businesses to avoid placing an unnecessary burden on such organizations.
South Korea, a major chip-producing nation and significant investor in the US chip industry, is where Ahn made his remark at a meeting with Katherine Tai, the United States Trade Representative.
From March 31 through June 26, the U.S. Department of Commerce will accept proposals for subsidies for facilities producing cutting-edge chips as well as current-generation, mature-node, and back-end facilities.
The biggest contract chipmaker in the world, Taiwan Semiconductor Manufacturing Co Ltd, which is spending $40 billion on a new chip facility in Arizona, refused to comment on the subject of American subsidies.
