South Korea and the United States have agreed to minimize uncertainty and business burdens for Korean companies investing in the U.S. arising from the implementation of the CHIPS Act, according to the Ministry of Trade, Industry and Energy, Friday. The two nations also decided to work closely with Korean companies to address their concerns regarding the Inflation Reduction Act (IRA).
Minister of Trade, Industry and Energy Minister Lee Chang-yang and his counterpart U.S. Secretary of Commerce Gina Raimondo issued a joint declaration at the first U.S.-Korea Supply Chain and Commercial Dialogue in Washington, D.C., held on the occasion of President Yoon Suk Yeol’s state visit to the U.S. on Thursday (local time).
The two countries agreed to minimize investment uncertainty and management burdens for companies under the obligations set out in the CHIPS Act, including the conditions for applying for subsidies and the guardrail clause that limits semiconductor production capacity in China for 10 years upon receipt of a subsidy.
