Samsung Electronics, SK hynix, and other major semiconductor firms have called for government attention and support in relation to the U.S. government’s impending subsidy payments.
During a “Public-Private Semiconductor Strategy Meeting” held on the morning of Feb. 26 at the Korea Chamber of Commerce and Industry in the Jung district of Seoul, Kyung Kye-hyun, president of Samsung Electronics’ semiconductor division; Kwak No-jung, president of SK hynix; representatives of other semiconductor material companies; and Minister of Trade, Industry and Energy Ahn Duk-geun, shared the outlook for semiconductor exports and investments, as well as difficulties in domestic investment and export activities on a company-by-company basis.
After the meeting, Kim Jeong-hoe, vice chairman of the Semiconductor Industry Association, met with reporters and stated, “Essentially, while companies apply for subsidies, the role of the government is also necessary. In that respect, companies have asked for a lot of interest from the government, and there has been dialogue indicating that the government is continuously paying attention to such a role.”
According to industry sources, the U.S. Department of Commerce plans to share the latest update on the Chips Act (Semiconductor Support Act) soon and will announce plans for additional subsidy payments. Last week, the U.S. decided to grant approximately US$1.5 billion in semiconductor subsidies to its domestic foundry company, GlobalFoundries.
There is a possibility that the support amounts for Samsung Electronics, which is building foundry plants in Taylor, Texas, and Arizona, and for Taiwan’s TSMC, will be disclosed in the upcoming announcement. However, due to the prioritization of domestic interests, it is speculated that Intel might receive up to US$10 billion in subsidies.
Minister Ahn emphasized in the Global Trade Strategy Meeting held on the same day, “The global trade environment is in a very serious situation. The government will quickly grasp and share information, and will respond more intensively by utilizing the Global Trade Strategy Meeting as a platform.”
He added, “The government is closely consulting through various channels on current issues such as U.S. semiconductor subsidies, Inflation Reduction Act tax credits, Foreign Entities of Concern, and the European Union’s Carbon Border Adjustment Mechanism.”