Andeokgeun, Head of Trade Headquarters, Departs for the U.S. to Discuss Semiconductor Support Act

Concerns Over Technology Patent Infringement and Declining Investment Appeal Expected
Aiming to Maximize Negotiation Leverage During Condition Specification Process

Andeokgeun, Head of the Trade Negotiation Bureau at the Ministry of Trade, Industry and Energy, will visit Washington DC, USA, from the 8th to the 10th (local time) to discuss semiconductor-related issues with the United States.

According to the Ministry of Trade, Industry and Energy on the 7th, Head Andeokgeun will meet with senior government officials from the White House and the Department of Commerce, members of Congress, and key think tank representatives to negotiate the relaxation of detailed support conditions under the 'Chips and Science Act (CSA)'.

The Semiconductor Support Act, which came into effect in August last year, is a law that provides financial and tax support from the U.S. government for semiconductor facility investments made within the United States. Its main provisions include $52.7 billion (approximately 69 trillion KRW) in financial support including semiconductor facility investment incentives and a 25% investment tax credit.

Andeok Geun, Head of Trade Negotiations at the Ministry of Trade, Industry and Energy, is delivering opening remarks at the 'Export Situation Review Meeting' held on the 1st at the Korea Trade Insurance Corporation in Jongno-gu, Seoul. Photo by Jinhyung Kang aymsdream@

On the 28th of last month (local time), the U.S. government announced the application guidelines for semiconductor production subsidies under the Semiconductor Support Act, setting six evaluation criteria: ▲economic and national security ▲business viability ▲financial soundness ▲technological readiness ▲workforce development ▲social contribution. The domestic semiconductor industry is concerned that compliance with these conditions could lead to exposure of companies’ critical technologies and management information.

Additionally, the detailed provisions of the so-called 'guardrail' clause, which restricts subsidized companies from investing in semiconductor facilities in China for 10 years, are expected to be announced soon, causing tension within the semiconductor industry.

Our government plans to raise concerns that the U.S. subsidy conditions could increase uncertainty, infringe on companies’ essential management and technology rights, and reduce the attractiveness of investment in the U.S. It will emphasize that cooperation from Korean companies is essential for the stability and advancement of the U.S. semiconductor supply chain. Furthermore, it is reported that the government plans to support maximizing negotiation leverage during the process where individual companies concretize subsidy conditions through agreements with the U.S. Department of Commerce in the future.

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