Friday, March 31st 2023

CHIPS Act Requirements Untenable According to Silicon Manufacturers in South Korea and Taiwan

Silicon manufacturers in South Korea and Taiwan have questioned the requirements outlined in the United States Chips and Science Act - South Korean President Yoon Suk Yeol spoke on Thursday March 30, and said that there was a growing concern within companies Samsung Electronics Corporation and SK Hynix Inc. with regard to criteria for new U.S. semiconductor subsidies. Excess profit sharing is one area of contention, as the U.S. government will expect dividends to be paid under special conditions. The companies are also reluctant to meet the requirements of submitting detailed information about fab capacity and yield estimates. Leaders are pointing to the potential sensitive nature of exposing too much confidential corporate strategy to bodies in the USA, and sources within Samsung and SK Hynix are worried that budgetary planning information will be revealed in minute detail.

The CHIPS Act grants a $52 billion pool of research and manufacturing funds, and subsidies would be sourced from it. SK Hynix's parent group is considering an application in order to gain access to funding via the CHIPS Act, the SK Group has formed plans to invest $15 billion of its own money into the U.S. chip manufacturing sector - a North American location for an advanced chip packaging plant is being decided upon. Samsung has invested a substantial $25 billion into its Texas operation, so is eligible to receive U.S. government subsidies as well.
Similar concerns are shared in Taiwan, where TSMC's chairman Mark Liu told reporters at an industry event: "We are still discussing with them. There are some conditions that cannot be accepted. We hope that they can be adjusted so there will be no negative effect. We will continue to talk to the U.S. government." TSMC is investing $40 billion into a chip fabrication plant located in Phoenix, Arizona.
South Korea passed its own bit of strategic legislation this week - on Thursday it announced the formation of a bill known as the "Korean Chips Act". The nation's trade minister repeated his president's views - that the criteria for Korean manufacturers to access US funding are unappealing. This new domestic act will create a fund that will provide substantial tax incentives to South Korean manufacturers and connected strategic industries, in order to boost semiconductor production. The government had already revealed long term plans earlier in March for major investments into the private sector, and this week's decision seems to fortify those maneuvers.
Sources: Reuters, The Register
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16 Comments on CHIPS Act Requirements Untenable According to Silicon Manufacturers in South Korea and Taiwan

#1
bonehead123
"If yaz wanna play, yaz gotzta pay" hehehe :D
Posted on Reply
#2
jsfitz54
If these companies want USA funding they should have to disclose. What STD's are they hiding? Already in bed with communist China and Russia?
If they don't like it, don't take the money.
Posted on Reply
#3
R-T-B
jsfitz54If these companies want USA funding they should have to disclose. What STD's are they hiding? Already in bed with communist China and Russia?
If they don't like it, don't take the money.
I hesitate to jump straight to the "communist" buzzword but otherwise agree. Want money? Agree to terms.
Posted on Reply
#4
trsttte
Boo freaking hoo, free incentives are not as free as otherwise would seem, the audicity of these people to complain about minimum requirements and just demanding free money when they're having historic high profits nonetheless
Posted on Reply
#5
bonehead123
Nuthin in life is FREE, regardless of how it is spun, mis-labeled, or blanketed by subterfuge.....
Posted on Reply
#6
DeathtoGnomes
if ya see a sign for FREE BEER, the first thing you ask is "What's the catch?". :D

Not to make this political intentionally but as I recall the IP theft that US companies experienced is the same process here, 'company needs money but has to fork over patents.
Posted on Reply
#7
ValenOne
From medium.com/discourse/tsmc-the-taiwanese-titan-be0774531bb
"In the 1970s and 1980s, the Taiwanese government gave the semiconductor industry strategic priority for development."


For scope, from tradebarrierindex.org
Trade Barrier Index 2021 with a lower tariff score has fewer trade barriers.

New Zealand's tariff score is 2.92
Australia's tariff score is 3.03
UK's tariff score is 3.94

Japan's tariff score is 4.05
US's tariff score is 4.54

Germany's tariff score is 4.88
EU's tariff score is 4.88

China's tariff score is 5.68
Russia's tariff score is 6.16

South Korea's tariff score is 7.35 <-------
India's tariff score is 8.18
Posted on Reply
#8
maxfly
Without them divulging the details of these untenable terms, it's really hard to have any sympathy.
Posted on Reply
#9
kondamin
If they do not like the conditions they should not make use of them.
probably even reconsider their presence in the nation, if the carrot doesn’t work the stick will follow.
Posted on Reply
#10
Wirko
trsttteBoo freaking hoo, free incentives are not as free as otherwise would seem, the audicity of these people to complain about minimum requirements and just demanding free money when they're having historic high profits nonetheless
It doesn't hurt to ask, TSMC and other guys do have some negotiating power here, don't you think?

I also find it surprising that Intel isn't outraged too - at least if these same terms apply to them (divulging details about capacity, yields, financial planning to the gov't).
Posted on Reply
#11
arandomguy
WirkoIt doesn't hurt to ask, TSMC and other guys do have some negotiating power here, don't you think?

I also find it surprising that Intel isn't outraged too - at least if these same terms apply to them (divulging details about capacity, yields, financial planning to the gov't).
There's different considerations involved due to Intel being a US company and also differing business models. For one Intel and Micron are already much more inclined to build fabs in the US, and therefore CHIPS act funding is more in the free money/handout side for them. Intel and Micron (among other US firms) are actively lobbying with respect to the CHIPS act and the terms are likely more in line with what they will accept, if not outright favors them. Companies such as TSMC, Samsung and others more so view the CHIPs act as an incentive to convince them to build fabs in the US as opposed to elsewhere, as such the terms are therefore more of a negotiating point. By comparison Intel is much more vocal with respect to negotiations in Europe as they otherwise would not choose to build fabs in Europe.
Posted on Reply
#12
WorringlyIndifferent
Of course the US government is going to require extremely granular details of these companies' capabilities and finances. Congress members need that information to be able to more effectively commit insider trading, which is, for some reason, still legal for them.

This isn't surprising at all. These acts are never for the benefit of the public and it was never designed to help distribute chip manufacturing into the US.
Posted on Reply
#13
maxfly
mathohardoyour name has 123 in it at a yaz not a word and gozta aslo not a word the he hehe with a wtf smile like with 3 hes we didnt know what you are aming for? your fam have a history of being poor or haveing brain damage because wow... bone head is and has been assouicaded with low iq ppl u lit haee the name and comments to back that u... why... why why have kid math but comment


but is should a b sutdent sees tons of things wrongso how are u semmling low aq.. your history ect/ect... is a huge proff so just stfu who has low i
Quit drunk posting dude.

I have no idea what that gibberish is supposed to mean.
Posted on Reply
#14
bonehead123
maxflyI have no idea what that gibberish is supposed to mean.
Me either, but it seems like mr/mrs maxer is thinkin that they are sending an sms to a textbuttbuddy or something...... if I could actually make heads or tails out of it, I might offer a response, but OTHO, I thought personal attacks directed at other members were against the rulz here, or am I mistaken ?

Therefore max, why don't YOU just stfu & leave, before some guys in very dark suits & sunglasses show up at your door at ~2:27am....
Posted on Reply
#15
R-T-B
bonehead123Therefore max, why don't YOU just stfu & leave, before some guys in very dark suits & sunglasses show up at your door at ~2:27am....
2:27am? Mods ain't paid enough for that shit.
Posted on Reply
#16
bonehead123
R-T-B2:27am? Mods ain't paid enough for that shit.
No, not the mods, those OTHER guys, you know, the ones that carry around all that cool, classified tech stuff that nobody knows about, hehehe :)
Posted on Reply
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