This photo, provided by Samsung Electronics Co., shows the tech giant’s new production line (P3) in Pyeongtaek, 70 kilometers south of Seoul, the largest chip manufacturing facility ever built to date by Samsung, whose production of state-of-the art NAND flash began on Sept. 7, 2022.
SEOUL, March 30 (Korea Bizwire) — South Korea’s semiconductor industry is complaining over the U.S. CHIPS and Science Act for requiring companies to submit information about production yield, which is regarded as sensitive and confidential data within the industry.
Earlier this week, the U.S. Commerce Department released new requirements for chipmakers seeking federal grants for building chip factories in the U.S.
Under the new guidelines, chipmakers need to fill in detailed projections for revenue and profit in an Excel-like tool to communicate with the U.S. Commerce Department before completing a full application.
“It is asking us to provide every information about how we produce semiconductors,” an industry source said. “This amounts to a technology leak.”
“If we look at the yield of the current version of semiconductors, for instance, we can make trajectories for future operation strategies and new types of chips,” said Seo Ji-yong, a professor of economics at Sangmyung University.
“The information may leak to a competitor. I just think it’s too much to ask for such sensitive information.”
Samsung Electronics Co. and SK hynix Inc., the world’s top two leading chip manufacturers, have yet to issue an official response.
Based on overall consideration of the upcoming situation, the companies will decide whether to apply for the subsidies or not.
In November 2021, Samsung said it will build a US$17 billion advanced chip facility in Taylor, Texas to “help boost production of advanced logic semiconductor solutions that power next-generation innovations and technologies.”
“Not applying for the subsidies will result in a deficit from the start, but applying for the subsidies means having to go through excessively strict requirements,” an industry source said.
“The government should step up to negotiate and find a compromise.”
The U.S., too, may be up for negotiations and find a compromise to prevent the program’s “failure,” which may be brought about by major producers like Samsung choosing not to apply.
“Both the companies and the government can say during negotiations that requesting sensitive data related to the company’s operation like production yields is just too much,” Prof. Seo said.
Kevin Lee (kevinlee@koreabizwire.com)
