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
Palestinian Ministry of Health: Two were martyred in Israeli shelling that targeted a besieged house in the town of Qabatiya in Jenin
At least 68 dead in migrant shipwreck off Yemen: IOM
Trump: We want to feed the people in Gaza, we do not want them to starve.
US President Donald Trump: We will impose sanctions on Russia if it does not end the war on Ukraine.
Israeli media: Polls show that 52% oppose Prime Minister Benjamin Netanyahu while only 29% support him.
Israeli media: 32% of Americans still support "Israel's" war on Hamas, while 60% oppose it.
Israeli media: Core US support for "Israel" hits its lowest, while support for Palestine reaches its highest levels.
Al Mayadeen's correspondent reports martyrs, injuries in Israeli bombardment of home in Heker al-Jame area in Deir al-Balah, central Gaza.
Al-Quds Governorate: Today, the spatial division of Al-Aqsa Mosque began in a public and dangerous manner, and we warn of a religious war in the region
The Ministry of Health in Gaza: This brings the total number of victims of famine and malnutrition to 175, including 93 children

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

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

China condemns US attempt to ban Dutch sales of chipmaking equipment

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

A rescued crew member from the ETERNITY C vessel in a video released by the Yemeni Armed Forces on July 28, 2025 (Yemeni Military Media)

Yemen Navy reveals fate of targeted Eternity C ship crew

  • Politics
  • 28 Jul 2025
An Israeli tank explodes following an ambush by al-Qassam Brigades in Gaza, Occupied Palestine, undated (Al-Qassam Military Media)

Al-Qassam strikes Israeli vehicles in Gaza, inflicts casualties

  • Politics
  • 30 Jul 2025
UAE lodges complaint against Israeli ambassador over 'misbehavior'

UAE lodges complaint against Israeli ambassador over 'misbehavior'

  • Politics
  • 1 Aug 2025
Protesters chant anti-Israeli slogans as they carry a banner that reads:" Freedom for Palestine, Alliance stop the war," during a demonstration in support of Palestinians in Gaza, outside the Israeli embassy, in Athens, Monday, June 9, 2025 (AP)

Athens mayor slams Israeli ambassador over Gaza war, graffiti claim

  • Politics
  • 3 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
A member of the al-Qassam Brigades, the armed wing of Hamas, takes part in a parade as he celebrates a ceasefire agreement between Hamas and the Israeli regime in Deir al-Balah, Gaza Strip, Sunday, January 19, 2025 (AP)
Politics

Al-Qassam: We’ll allow aid to Israeli captives if Gaza siege ends

Freed Lebanese freedom fighter Georges Abdallah during an interview on Al Mayadeen, which aired on Sunday, August 3, 2025 (Al Mayadeen screengrab)
Politics

Exclusive: Resistance key to building state, Georges Abdallah says

United Nations Secretary General Antonio Guterres gives a statement about the situation in Gaza at UN headquarters, Friday, June 27, 2025 (AP)
Politics

UN warns Gaza faces water crisis, looming famine under Israeli siege

Israeli soldiers drive their armored personnel carrier along the Gaza Strip, in southern occupied Palestine, Wednesday, July 30, 2025 (AP)
Politics

Ex-Israeli general says Gaza starvation campaign isolated 'Israel'

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