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S. Korea Asks United States To Review China’s Chip Subsidies Policy

By  |  May 24, 2023

South Korea has requested that the United States review the criteria for new semiconductor subsidies, citing concerns over the potential impact of regulations aimed at restricting chip investment in countries like China. This information was revealed in a US public filing.

The US commerce department proposed rules in March to restrict access to semiconductor manufacturing and research funds of $52 billion under the CHIPS Act by countries considered to be of concern, including China.

Read more: Senate To Vote Next Week On China Chip Competition Bill

South Korea, a prominent chipmaker and investor in the US chip sector, has requested a review of the regulation that restricts recipients of US funding from constructing new facilities in foreign countries beyond 5% of current capacity.

“The Republic of Korea believes ‘guardrail provisions’ should not be implemented in a manner that imposes an unreasonable burden on companies investing in the United States,” South Korea said, using its official name.

The filing did not provide additional information, however, according to South Korea’s Yonhap news agency, Seoul requested an increase in the limit to 10%.