The Ministry of Trade, Industry and Energy announced on the 22nd that it plans to conduct additional discussions with the US side during the next 60-day opinion collection period regarding the disclosure of detailed regulations on the US semiconductor support act.
The U.S. Department of Commerce announced on the 21st (local time) detailed regulations for safeguard provisions to ensure that technology and innovation funded under the Semiconductor Act are not used for malicious purposes by adversaries.
In the case of receiving investment incentives (subsidies), the key is to limit the expansion of semiconductor production facilities by more than 5% in countries of concern, such as China, for 10 years from the date of receipt. As concerns about high-tech equipment for semiconductor production have been lifted and investment in production facilities has become possible, although limited, there is an atmosphere in our semiconductor industry that ‘the worst has been avoided’.
The Ministry of Industry said, “As a result of reviewing the detailed guardrail regulations, it is judged that it will be possible for Korean companies to maintain and partially expand production facilities in China as well as upgrade technology.” It is expected that additional production expansion will be possible depending on the corporate strategy.”
The Ministry of Trade, Industry and Energy said, “We will analyze the contents of the detailed regulations in detail while continuing to communicate with the industry.”
“Our companies are expected to make decisions related to investments in the US and applications for US incentives from the perspective of global management strategies after analyzing all relevant conditions, such as detailed guardrail regulations,” he said. We plan to provide full support,” he stressed.
As uncertainty in the overseas investment and management environment increases due to the US’s semiconductor regulation in China, the government has embarked on strategic responses such as expanding domestic production and investment bases and strengthening industrial competitiveness, along with responding to pending trade issues at the country-to-country level.
The government, which announced a strategy to build the world’s largest semiconductor cluster in Gyeonggi-do through an investment of 300 trillion won by 2042, plans to further focus on fostering the semiconductor industry in the future.
The Ministry of Trade, Industry and Energy added, “We plan to promote the strategy for establishing a mega-cluster of semiconductors in collaboration with related ministries, while also focusing on policies to strengthen the ecosystem of relatively weak system semiconductors.”
(Sejong = News 1)
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.