“South Korea Urges U.S. to Reconsider Proposed Chip Law Regulations Limiting Expansion in China: Yonhap News”

WASHINGTON/SEOUL, May 24 (Yonhap) — South Korea has asked the United States to reconsider the U.S.’s proposed limit on the expansion of production by South Korean semiconductor makers in China, news showed. Tuesday (local time) a US public notification.

The request comes about two months after the U.S. Department of Commerce said the CHIPS and Science Act would limit the expansion of semiconductor manufacturing capacity in China to 5%e and other “foreign countries of concern” for companies receiving incentives under US law.

“The ROK (Republic of Korea) believes that the ‘safety provisions’ (guardrail provisions) should not be implemented in a way that imposes an unreasonable burden on companies investing in the United States,” Seoul said in a statement. his comments on the proposed flea law regulations.

“As part of this, the ROK calls on the US government to reconsider the current definitions of ‘material expansion’, ‘legacy semiconductor’ and other key terms in the proposed rule” , she added, according to the documents published by the Federal Register.

The Chip Act provides up to $52.7 billion in subsidies to chip makers who invest in new production facilities in the United States but allows the US government to “clawback” incentives given to any companies that do not respect the 10-year period and the 5% limitation on expansion.

Seoul asked to “further clarify the scope of restricted activities under ‘Technology Clawback’.” South Korea will submit more detailed comments to the US government on how these important points can be addressed, according to the South Korean government.

“The ROK calls on the US government to actively consider the country’s comments when finalizing detailed rules on ‘security arrangements’,” he added.

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(FIN)