Samsung, SK Hynix among tech firms concerned about US chip subsidies

SEOUL TAIPEI: The criteria to qualify for new United States semiconductor subsidies could be burdensome for companies such as Samsung Electronics and SK Hynix, South Korea's trade minister said on Thursday as Taiwan's TSMC expressed concern.

Three industry sources said the application process could expose confidential corporate strategy because of the fact that it includes sharing excess profit with the US government.

Subsidies would come from a US $52 billion pool of research and manufacturing funds earmarked under the US's so-called CHIPS Act, for which the Commerce Department has announced guides and templates this month.

SK Hynix parent SK Group wants to invest $15 billion in the US chip sector, including to build an advanced chip packaging factory, and has said it is considering applying for funding. In Texas, Samsung is planning to build a chip plant that could cost more than US $25 billion, and has said it is reviewing the guidelines.

Three Korean chip sources told Reuters it was akin to revealing corporate strategy, as well as detailed cost structure information and projected wafer yields, utilisation rates and price changes.