South Koreans are annoyed that the White House has banned the flow of US chip subsidies into China, the British Technology Chronicle reported on March 2.
For South Koreans, a US requirement to ban recipients of subsidies related to the Chip and Science Act from expanding their business in China within 10 years is an obstacle to development, the report said.
As reported by South Korean media, the head of South Korea's Ministry of Industry, Trade and Resources expressed concern about the so-called "guardrail clause" outlined by the US Department of Commerce.
According to reports, the Chip and Science Act was initially described by supporters as a way to strengthen US semiconductor manufacturing capacity and rebalance the global supply chain after the COVID-19 epidemic and the ensuing shortage of semiconductors. However, with the addition of the "guardrail clause", the Biden administration clearly plans to use the funds listed in the bill to persuade chipmakers to support US efforts to stifle China's chip industry.
According to reports, the Chip and Science Act was initially described by supporters as a way to strengthen US semiconductor manufacturing capacity and rebalance the global supply chain after the COVID-19 epidemic and the ensuing shortage of semiconductors. However, with the addition of the "guardrail clause", the Biden administration clearly plans to use the funds listed in the bill to persuade chipmakers to support US efforts to stifle China's chip industry.
In response to the rules, South Korea's Ministry of Industry, Trade and Resources reportedly said it would consult with US authorities to ensure that South Korea's interests are reflected in the agreement.
This is not the first time South Korea has disagreed with the Biden administration on this issue. Last fall, Samsung and SK Hynix, two of the world's largest memory chip makers, found themselves the target of US export restrictions on devices and software used to produce DRAM chips below 18nm, NAND flash memory at 128nm and logic chips under 14nm.
The United States eventually granted the two companies one-year immunity. Even so, these restrictions threaten large amounts of investment by these companies in China. For example, SK Hynix is acquiring Intel's NAND flash memory manufacturing plant in Dalian, China. Meanwhile, Samsung operates two memory factories in Xi'an and Suzhou in China.
However, while the US can limit the sale of US chips and manufacturing equipment to China, it also needs the support of its allies, mainly Japan, South Korea and the Netherlands, to effectively block China's advanced chip industry. However, if funding from the Chip and Science Act is tied to this agenda, it could be counterproductive-chipmakers may decide to relocate planned chip factories to other countries with fewer funding strings attached.
The South Korean government is reportedly communicating with the United States to seek to protect South Korean chipmakers' current investment in China from China-related provisions of the US Chip and Science Act, the Singapore-based Lianhe Zaobao website reported on March 1.
Reported that the South Korean government through a variety of channels to communicate with the United States to avoid the adverse impact of South Korean enterprises that have invested in China. The South Korean government is discussing with the United States about the scale and scope of outbound investment by South Korean enterprises.
According to Reuters, both Samsung and SK Hynix regard China as a key market and have memory chip factories in China.
[original title] the United States wants to contain China this time, but South Korea can't sit still.
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Editor | Chen Yanan
Editor in charge | Xia Lijuan
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