US’ new subsidy rules for chipmakers put de facto ban on doing business with China
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Loading... - Marbel Soto
- 02 Mar 2023
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Applicants must agree not to expand their chipmaking capabilities in countries of concern — such as China — for 10 years after winning subsidies
New application guidelines for semiconductor manufacturing subsidies released by the US Department of Commerce emphasize prioritizing shipments to the military and security sectors and banning new investments in China as a condition for receiving US government funding. That creates a dilemma for Samsung Electronics and other Korean chipmakers that would like to apply for subsidies, since they would basically have to forfeit business opportunities in China in order to meet the strict funding requirements.
In the guidelines, published Tuesday, the US Commerce Department explained the standards for assessing applications for US$39 billion in semiconductor manufacturing subsidies now that it has begun accepting investment plans.
The Commerce Department said in the guidelines that the economy and national security are the chief goals behind the subsidies and that the primary assessment criteria is whether applicants’ investments will bring the US Department of Defense and the security sector a steady long-term supply of semiconductors.
The department unveiled several requirements for the subsidies while explaining that decisions about whether to award subsidies will be made following a strict financial analysis. Read More..
