Korean Chipmakers Say CHIPS Law Requirements Are Unacceptable: Report
Whereas the U.S. authorities is eager to assist semiconductor corporations construct new factories within the nation, it imposes strict necessities for many who obtain funding below the CHIPS and Science regulation. However South Korean chipmakers are dismayed by the necessity to present detailed data on fab capability and even anticipated yields, amongst different issues. They view these necessities as a menace to their commerce secrets and techniques, reviews Business Korea.
As a part of the subsidy utility course of, the U.S. Division of Commerce requires corporations to supply particulars akin to projected manufacturing facility manufacturing capability, utilization fee, anticipated wafer yield, preliminary gross sales costs, manufacturing volumes for annually, and projected value adjustments by wafer sort. . Firms requesting subsidies should additionally submit profitability indicators, akin to projected money flows in Excel recordsdata, to confirm their calculation methodology.
The official purpose for requesting this information is to implement a coverage of confiscation of extra earnings earned past the anticipated quantity by corporations. Nevertheless, metrics akin to utilization charges and yields are essential indicators of a chipmaker’s competitiveness and are due to this fact thought-about commerce secrets and techniques. Additionally, yield charges not solely display technological prowess (or lack thereof), but in addition reveal unit prices. For reminiscence creators, unit prices are key measures of effectiveness. For foundries, unit prices aren’t solely their very own commerce secret, but in addition the commerce secret of their legendary prospects.
Whereas the US DoC has formally assured that commerce secrets and techniques is not going to be disclosed to any third social gathering, South Korean corporations have purpose to be involved. Leaking these essential commerce secrets and techniques to US corporations like Intel may severely harm Samsung Electronics and SK Hynix. Furthermore, given the extreme profit-sharing, labor union obligations, and restrictions on semiconductor investments in China, Korean corporations might not profit from US subsidy initiatives and will even lose greater than they earn.
In consequence, Korean corporations that qualify for subsidies are hesitant to use, based on the report. In the meantime, questioned by trade specialists BusinessKorea He believes that Korean corporations don’t have any selection however to resort to subsidies as a consequence of rising inflation and rising commodity costs driving their funding wants. As well as, South Korea’s relationship with the USA may additionally be influential of their choices.
Samsung Foundry is at present constructing its new EUV-enabled manufacturing facility close to Taylor, Texas. The corporate initially deliberate to take a position $17 billion, however funding necessities are prone to improve as a consequence of inflation and rising prices. The manufacturing facility is predicted to begin manufacturing within the second half of 2024 and the corporate will make chips in 3nm and 4nm class nodes. The corporate can also be contemplating constructing a large manufacturing facility complicated that would require $192 billion in intervention, although it is unclear whether or not any official choices have been made.
SK Hynix will possible not construct a reminiscence manufacturing plant within the US, however plans to construct a state-of-the-art packaging facility within the US that’s eligible for CHIPS subsidies.
“The calls for of the US authorities could also be extreme, however the US has authentic applied sciences for semiconductors, together with excessive ultraviolet lithography gear,” mentioned Kyung Hee-Kwon, an assistant researcher on the Korea Institute of Industrial Economics. BusinessKorea. “Some high-end US industries and high US workers are additionally wanted for Samsung Electronics to develop within the non-memory sector, so I believe Samsung Electronics will apply for semiconductor subsidies.”
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