Yoon Visiting the US, K-Chips Act Discussion Opens... Industry 'Expectations'

President Yoon to Discuss CHIPS Act and Semiconductor Support Law at Korea-US Summit
Government Ministries Also Discuss Semiconductor Issues with US Administration and Congress
"Active Role of Government Needed"

(New York = Yonhap News) Reporter Seomyeonggon = President Yoon Suk-yeol and First Lady Kim Keon-hee arrived at John F. Kennedy International Airport in New York, USA, on the 19th (local time) and shook hands with the welcoming officials.

[Asia Economy Reporter Kim Pyeonghwa] Expectations are rising in the semiconductor industry as discussions on Chip4 (Chip4: Korea, United States, Japan, Taiwan) and the Chips and Science Act (CSA) are likely to take place at the Korea-US summit.

According to the semiconductor industry, the Blue House, and the National Assembly on the 20th, President Yoon Seok-yeol, who is on a 7-day, 5-night overseas tour visiting the UK, the US, and Canada, arrived in New York, USA on the 19th (local time) to attend the 77th United Nations (UN) General Assembly. President Yoon is scheduled to deliver a keynote speech at the UN General Assembly on the 20th and then hold a Korea-US summit locally.

Since the agenda was not shared in advance, the discussions for this summit have not been finalized. However, it is expected that the Inflation Reduction Act (IRA), related to the electric vehicle industry, along with Chip4 and the Chips and Science Act, could be brought up for discussion due to their significant importance in the semiconductor sector.

Government ministries will also conduct semiconductor discussions with the US administration and Congress in line with President Yoon’s overseas schedule. Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy will visit Washington D.C. on the 20th and 21st to consult with US Commerce Secretary Gina Raimondo and others to ensure that domestic companies’ activities are not restricted by the guardrail provisions of the Chips and Science Act. The Ministry of Foreign Affairs, led by Second Vice Foreign Minister Lee Do-hoon and relevant working departments, will also discuss key Korea-US economic issues including semiconductors in the US.

The semiconductor industry is expressing expectations for the government’s proactive approach amid growing difficulties in China’s semiconductor business due to US regulations. The US is conducting Chip4 discussions to secure semiconductor competitiveness, a core of technological security, in its hegemonic conflict with China, aiming to establish a semiconductor supply chain excluding China. The Chips and Science Act also prohibits semiconductor companies that receive tax credits domestically from investing in China. This poses significant concerns for Samsung Electronics and SK Hynix, which operate semiconductor plants and businesses in China. The industry believes the government needs to actively engage in consultations with the US.

Domestically, the start of National Assembly discussions on the partial amendment bill of the Semiconductor Industry Competitiveness Enhancement Act (K-Chips Act), titled the "Special Measures Act on Strengthening and Protecting National Advanced Strategic Industry Competitiveness," raises expectations. The National Assembly’s Industry, Trade, Small and Medium Enterprises Committee submitted the bill at a plenary meeting the day before. Although there are many issues to be discussed in related subcommittees, the industry views this as a difficult but important first step.

Of course, there are many more tasks ahead for the government and the National Assembly. Park Jae-geun, president of the Korea Semiconductor Display Technology Society, said, "The K-Chips Act must be quickly discussed in the National Assembly to establish a legal basis for prompt implementation," adding, "Participation in Chip4 requires the government to actively ensure that Korea is treated fairly as an ally."

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