Korean media: Samsung and other manufacturers will negotiate with the US government on the subsidy details of the chip bill

28 August 2023

Semiconductor industry insiders have revealed that due to the ongoing submission phase of the US chip bill subsidy intent letter and the uncertain application deadline, Samsung Electronics and SK Hynix are expected to continue marathon negotiations with the US government.

According to Business Korea, the US chip bill project authorities recently stated that as of April 14th, more than 200 semiconductor companies from 35 states have submitted letters of intent. In an interview with foreign media, U.S. Commerce Secretary Raymond said that more than 200 companies have expressed interest in applying for chip bill subsidies, but they have not yet entered the application process.

The US government did not disclose the list of companies submitting letters of intent, but stated that these companies cover the entire semiconductor ecosystem. It is reported that more than half of them are used in manufacturing facilities, including cutting-edge and traditional processes as well as packaging, while the rest are related to semiconductor materials, components and equipment fields, as well as research and development facilities.

It is reported that since March 31st, the US chip bill project management department has been accepting applications from companies hoping to build advanced semiconductor wafer factories, and starting from June 26th, it will accept applications for back-end process facilities such as traditional processes and packaging. The letter of intent must be submitted before the application is accepted, requiring the company to provide detailed information on the scale, location and capacity of the subsidy factory, production products, investment time and amount, and expected customers.

Recently, the Korean Economic Research Institute analyzed and pointed out that the subsidy application rules of the US chip bill have four "toxic" clauses for Korean companies, which should be coordinated and modified, including excessive profit sharing, requiring companies to submit detailed accounting information, and restricting investment in China and other places. The Korean Institute of Economic Research believes that the relevant rules will have a serious impact on large-scale investment by Korean semiconductor companies in the United States, and it is necessary to alleviate the subsidy support requirements of US semiconductor laws through cooperation between South Korea and the United States.