Samsung and SK Hynix Also Signed the Letter... Debate Over Eligibility for US Semiconductor Act Support

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The global semiconductor industry is closely watching the situation as Intel continues to express a preference for prioritizing domestic companies regarding the beneficiaries of the U.S. CHIPS for America Act. With South Korean semiconductor companies such as Samsung Electronics and SK Hynix expanding their operations in the U.S., attention is focused on how Intel's opposition might affect future investments.

According to business circles on the 10th, the Biden administration is pushing to provide subsidies totaling $52 billion (approximately 61.3 trillion KRW) over the next five years to foster the domestic semiconductor industry. Although the U.S. Senate passed the bill in June, it has yet to clear the House of Representatives. In response, the U.S. semiconductor industry is actively engaging with relevant agencies to ensure the bill's passage. On the 1st, the Semiconductor Industry Association (SIA) submitted a letter signed by 59 CEOs from global semiconductor, automotive, and tech companies urging Congress to pass the bill promptly to strengthen the supply chain. Among the signatories were Choi Si-young, President of Samsung Foundry, and Lee Seok-hee, President of SK Hynix.

While the letter includes names such as Intel, Taiwan's TSMC, and the Netherlands' ASML, suggesting industry unity, the underlying interests of each company differ. In the fiercely competitive global semiconductor industry, securing as much support as possible for the massive investments required for production facilities is directly linked to technological and business competitiveness.

Pat Gelsinger Intel CEO
Photo by Reuters Yonhap News

Intel CEO Pat Gelsinger, in an op-ed on the 8th (local time), emphasized the need for U.S. government support to resolve the semiconductor shortage, stating, "Without American investment in domestic semiconductor companies competing with other countries, the U.S. cannot have sustainable access to semiconductors that support the economy and national defense." Gelsinger has long argued that the current supply chain crisis stems from the semiconductor industry being concentrated in Asia and insists that subsidies funded by American taxpayers should be provided exclusively to domestic companies.

In response to these claims, former TSMC Chairman Chang Chung-mou and Chairman Liu Derin recently expressed blunt displeasure, calling Gelsinger "rude." Bertrand Loy, Chairman of the Semiconductor Equipment and Materials International (SEMI), argued that "foreign companies like TSMC and Samsung Electronics should also be eligible for support to foster a healthy semiconductor ecosystem in the U.S."

South Korea's semiconductor industry is also closely monitoring the situation. Although Samsung Electronics and SK Hynix have not made official statements, they cannot ignore Intel's opposition. Samsung Electronics, which recently confirmed a $17 billion investment in the U.S., is watching the decisions of the U.S. government and Congress carefully, as this issue directly affects future investment costs. SK Hynix Chairman Chey Tae-won also recently mentioned the possibility of investing in a U.S. semiconductor plant and stated that cost calculations need to be reviewed.

A source from the domestic semiconductor industry said, "While U.S. companies centered around Intel may oppose, currently, only Samsung Electronics and TSMC have advanced process capabilities worldwide," adding, "Given the U.S. government's goal to secure supply chains and counter China, it will not be easy to simply follow Intel's demands."

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