The criteria to qualify for new U.S. semiconductor subsidies could be burdensome for companies such as Samsung Electronics Co Ltd and SK Hynix Inc, South Korea's trade minister said on Thursday.
Three industry sources said the application process could expose confidential corporate strategy, because of the conditions that include sharing excess profit with the U.S. government.
Subsidies from a $52 billion pool of research and manufacturing funds earmarked under the United States' CHIPS Act, which the Commerce Department announced this month, would come from a $52 billion pool of research and manufacturing funds.
SK Hynix parent SK Group plans 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. Samsung is working on a chip plant in Texas that could cost over $25 billion and said it is reviewing the guidelines.
Three Korean chip sources told Reuters that funding applications may require detailed cost structure information as well as projected wafer yields, utilisation rates and price changes.
All of this information is confidential. The cost structure is the most important thing in chips. One of the sources who didn't want to be identified said that experts would be able to tell our strategy at a glance.
South Korean Trade Minister Ahn Duk-geun said on Thursday that the United States' subsidy provisions should reflect the opinions of the government and companies of South Korea so that they do not impose any burden on those companies.
Ahn said he was talking to the United States Trade Representative Katherine Tai in South Korea, a leading chipmaking country and major investor in the U.S. chip sector.
Applications for leading-edge chip facilities from March 31 and current-generation, mature-node and back-end production facilities will be accepted from June 26th, according to the U.S. Department of Commerce.