"‘Client List Can Be Omitted’... US Eases Semiconductor Information Submission Pressure"

Submission of Supply Status by Sector
Appears to Accept Requests from Companies

U.S. President Joe Biden is holding up a silicon wafer at the Semiconductor Supply Chain CEO Meeting held at the White House last April.
[Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] As the deadline for the U.S. government’s demand for global semiconductor companies to submit supply chain-related information approaches in five days, it has been reported that the original requirement to list major customer companies has been partially relaxed to allow submission of supply status by sector instead. Domestic companies such as Samsung Electronics and SK Hynix, which were hesitant to submit data due to confidentiality agreements with customers, are expected to coordinate the level of data submission until the last minute to avoid exposing sensitive information.

According to industry sources and local insiders on the 4th (Korean time), the U.S. Department of Commerce plans to accept requests from semiconductor companies to submit data categorized by industry?such as automotive, mobile phones, and computers?instead of sensitive details like customer names, in relation to the semiconductor supply chain survey due on the 9th.

An industry official said, "Semiconductor supply contracts strictly keep all information related to customers confidential, and exposing such information can lead to huge penalties or termination of business relationships," adding, "It seems the U.S. government has partially acknowledged these industry concerns."

The survey items announced by the Biden administration after a video conference with the global semiconductor industry at the end of last September consist of 26 questions covering internal company information such as customer data, semiconductor inventory, orders, and sales. An industry insider noted, "The semiconductor supply chain information requested by the U.S. government ultimately centers on the supply shortage of automotive semiconductors, which has a significant impact on downstream industries," and predicted, "The Biden administration will prioritize resolving this issue and focus on collecting related information."

Domestic companies such as Samsung Electronics and SK Hynix, which have been asked to submit data, are reviewing the level of submission mainly through internal response teams. They are expected to cooperate in submitting data while minimizing exposure of sensitive matters by comparing and reviewing industry conditions until the deadline. Earlier, Samsung Electronics Vice Chairman Kim Ki-nam said on the 26th of last month regarding the U.S. information submission request, "We are responding calmly after considering various factors." SK Hynix President Lee Seok-hee also said on the 28th of last month, "We are reviewing internally and actively communicating with the government."

Meanwhile, Moon Seung-wook, Minister of Trade, Industry and Energy, is scheduled to visit the U.S. from the 9th to the 11th to meet with the U.S. Secretary of Commerce and Secretary of Energy. The timing of the visit is right after the information submission deadline. It is reported that Minister Moon will explain the difficulties Korean semiconductor companies face in submitting additional data due to trade secret protection and discuss ways to strengthen bilateral cooperation.

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