Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Hamas: The great sacrifices and steadfastness of our people have thwarted the Israeli occupation’s plans of subjugation and displacement.
Hamas: We salute our people who confronted the fascist occupation plots that targeted them and their national rights.
Hamas: We salute our people who have demonstrated unparalleled pride, heroism, and honor.
Hamas: We salute our great people in the Gaza Strip, Al-Quds, the West Bank, and both inside and outside the homeland.
Hamas: We call on President Trump and the guarantor countries to compel the occupation government to fully implement the obligations of the agreement.
Hamas: We highly appreciate the efforts of the brotherly mediators in Qatar, Egypt, and Turkey, and we value the efforts of US President Donald Trump aimed at ending the war.
Hamas: We announce that an agreement has been reached, which entails an end to the war on Gaza, the withdrawal of the occupation, the entry of aid, and a prisoner exchange.
Hani al-Dali to Al Mayadeen: Allegedly, Trump is personally guaranteeing a halt to the genocide and an initial 70% withdrawal from the Gaza Strip, to be followed by a full withdrawal.
Qatari Foreign Ministry spox: Mediators say agreement reached on all terms of first phase of Gaza ceasefire.
Qatari Foreign Ministry spox: Mediators say Gaza ceasefire to include end of war, release of Israeli captives and Palestinian prisoners, and entry of aid.

S. Korea: Chipmakers' US subsidies toughening conditions

  • By Al Mayadeen English
  • Source: Financial Times
  • 3 Mar 2023 16:02
3 Min Read

The US federal fund intended to promote advanced chip production in America entails substantial conditions for South Korean chipmakers who voice their concern.

  • x
  • SK Hynix Inc.'s DRAM module is shown at its the headquarters in Seoul, South Korea, Wednesday, January 30, 2013 (AP).
    SK Hynix Inc.'s DRAM module is shown at its headquarters in Seoul, South Korea, Wednesday, January 30, 2013 (AP).

The stringent requirements disclosed this week for businesses utilizing a $39 billion US federal fund intended to promote advanced chip production in America has prompted concern by South Korean chipmakers.

A section in the Commerce Department's rules released this week for applications for funding under the Chips Act, approved by Congress last year, is of particular concern since it mandates that businesses give the US government a portion of their unanticipated surplus earnings.

South Korean chipmakers like Samsung Electronics and SK Hynix are concerned about the implications as they plan to build plants in the US and still heavily rely on their domestic market. The new subsidies are intended to build a cutting-edge US semiconductor industry as part of efforts to counter China.

Yeo Han-koo, Seoul’s former trade minister, argued that the clause concerning excess profit-sharing was "problematic" and that it was an “unprecedented move charting a new territory that we haven’t seen in recent years.”

“Many companies may cry out on this. It may set a worrisome precedent for other countries who may follow suit,” the former minister noted.

Related News

Nvidia and AMD agree to give US 15% of China chip revenues

Reliance on Taiwan chips puts US economy at risk amid China tensions

The commerce department said that businesses that received more than $150 million would be required to pay back to the government when their returns exceeded initial predictions by a certain amount.

As chipmakers prepare to submit their applications, precautions have been put in place to guarantee that the subsidy scheme is not exploited. It is worth noting that SK Hynix plans to develop a cutting-edge chip packaging facility in the US, Samsung is building a $17 billion foundry in Taylor, Texas.

“We’re perplexed by these unexpected conditions. We’ve never seen anything like this for state incentives,” said an industry executive. “It is unclear how they will calculate excess profits. They want to take some of our profits when the business is booming but they won’t return our money when the industry is in a downturn. This will be a key point of contention.”

On that note, Yeo explained that explaining "excess profits" is a complex matter which “will give the regulator a huge discretionary power in implementing it, while companies will be incentivized to set the threshold higher."

A law professor at the Seoul National University and an expert in the field of international trade disputes highlighted that "Korean chipmakers’ anguish over their future investment plans,” will now only deepen as “They will be worried that their sensitive R&D and financial information will fall into the hands of a foreign government.”

Read more: Dell technologies aims to phase out Chinese chips by 2024: Reports

  • Chinese chipmakers
  • Chips industry
  • chipmaking
  • Microchips
  • US
  • semiconductors
  • China
  • South Korea

Most Read

Tucker Carlson speaks at a memorial for Charlie Kirk, Sunday, September 21, 2025, at State Farm Stadium in Glendale, Arizona (AP)

Tucker Carlson: Israeli officers gave orders on Iran inside Pentagon

  • Politics
  • 2 Oct 2025
A Hamas fighter in combat fatigues stands before the ceremony for the handover of Israeli captives to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)

Hamas responds to Trump plan, backs Gaza withdrawal, exchange

  • Politics
  • 3 Oct 2025
Mossad’s secret role in Aldo Moro’s 1978 murder revealed

Mossad’s secret role in Aldo Moro’s 1978 murder exposed

  • Politics
  • 5 Oct 2025
The Palestinian resistance and the people of Gaza showed that after combating Israeli aggression for two years, they remain victorious in the face of oppression (Mahdi Rteil/Al Mayadeen English)

Al-Aqsa Flood two years on, a tale of victory

  • Politics
  • 6 Oct 2025

Coverage

All
War on Gaza

Read Next

All
An Israeli armored vehicle moves on a street of a local market during a military raid in the West Bank refugee camp of Balata, Wednesday, October 8, 2025 (AP)
Politics

Israeli settlers kill Palestinian youth near Ramallah amid raids

Russian Foreign Minister Sergey Lavrov speaks during the Moscow format consultations on Afghanistan in Moscow, Russia, Tuesday, Oct. 7, 2025 (AP)
Politics

Iran interested in resuming nuclear talks: Lavrov

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during a news conference at the International Monetary Fund (IMF) headquarters in Washington, April 25, 2025 (AP)
Politics

IMF head flags US budget, Europe Defense spending challenges

Prime Minister of Italy Giorgia Meloni addresses the 80th session of the United Nations General Assembly, Wednesday, Sept. 24, 2025, at UN headquarters (AP)
Politics

Meloni faces ICC complaint over Gaza genocide complicity with Israelis

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS