One Week Before US Semiconductor Data Submission... Samsung and SK Hynix in 'Cautious Mode'

Deadline for White House Survey Submission on the 8th (Local Time)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The deadline for the Biden administration's demand for semiconductor industry confidential information submission is just one week away. While domestic semiconductor companies such as Samsung Electronics and SK Hynix have taken a principled stance and are maintaining a cautious attitude, the pressure from the U.S. is intensifying as the deadline approaches, causing significant concern.

According to the industry on the 2nd, Samsung Electronics and SK Hynix are reviewing the U.S. government's semiconductor information survey in preparation for the submission deadline on the 9th (Korean time). It has been a month since the White House and the Department of Commerce requested semiconductor companies in Korea, as well as Taiwan's TSMC and U.S. Intel, to submit supply chain-related information such as semiconductor inventory, orders, and sales, but companies are still focusing on internal review without finalizing whether to submit the information.

This cautious attitude is also reflected in recent statements by the heads of the two companies. Samsung Electronics Vice Chairman Kim Ki-nam said to reporters on the 26th of last month regarding the U.S. information submission request, "We are calmly responding while considering various factors." Two days later, on the 28th, SK Hynix President Lee Seok-hee also stated, "We are reviewing internally and actively communicating with the government."

The reason companies are extremely reserved in their statements is that those doing business in the U.S. find it difficult to refuse requests from the local government. As the U.S. is seeking to contain China and reorganize the global supply chain, pressure is mounting for domestic companies to participate. However, it is also difficult to accept disclosing customer confidential information or having strategies exposed through information to the U.S. semiconductor industry, which is closely watching Samsung Electronics and SK Hynix in the semiconductor market.

In the case of Taiwan's TSMC, conflicting positions have emerged through local foreign media: one stating that they will not provide customer confidential information to the U.S. government, and another stating that they have decided to submit semiconductor supply chain information in accordance with the U.S. Department of Commerce's request. Some analysts suggest that TSMC has not yet clearly finalized its internal stance. On the 21st of last month, the U.S. Department of Commerce publicly mentioned Intel, GM, Infineon, SK Hynix, and others as having agreed to submit related materials, and if a particular company submits materials first, it is expected that mutual pressure will arise.

A domestic semiconductor industry official said, "It seems practically difficult for domestic companies to outright refuse to submit documents," adding, "Ultimately, they are likely conducting legal and business reviews step by step, considering the level and scope of information disclosure."

In this process, companies are attempting to convey their positions to the U.S. side through the government. While companies prepare the detailed survey contents themselves, the Ministry of Trade, Industry and Energy is responsible for communicating inquiries related to this with the U.S. government or conveying opinions that companies wish to express. An official from the Ministry said, "We are holding frequent face-to-face meetings and communicating by phone with related companies to discuss how to respond."

This content was produced with the assistance of AI translation services.