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.
Korea and the U.S. will also establish a public and private semiconductor cooperation forum to strengthen ties in the chip industry between the two countries.
Regarding semiconductor export controls, where the U.S. has banned the export of U.S.-made equipment to semiconductor companies in China, they will discuss how to operate export control measures more predictably to minimize supply chain disruptions after the expiration of the one-year blanket license applied to Korean companies in October.
The U.S. has been attempting to limit China’s chip technology development through the CHIPS Act but the details of the regulations have raised concerns over Korean companies actively selling their chips in China.
Source: Korea Times
