South Korea and the United States will continue to consult closely over Seoul's concerns regarding the U.S. Chips and Science Act, Seoul's trade minister said Thursday.
The U.S. has also agreed to closely work with South Korean chipmakers in implementing the chips act, according to Ahn Duk-geun.
"The U.S. emphasized that South Korea is one of the most important partners when it comes to cooperation on semiconductors, and said it will closely consult with the government and businesses of South Korea in the process of implementing subsidies under the chips act," the trade minister told reporters.
Ahn arrived here Wednesday for talks on what he called South Korea's "concerns" over the act that offers up to US$52.7 billion in subsidies to chipmakers, but in exchange for what many consider business secrets.
The U.S. announced details of subsidies under the chips act last week in what is known as the Notice of Funding Opportunity or NOFO.
The South Korean minister earlier noted the U.S. demand for "too much information" from South Korean chipmakers has created "concerns."
"We actively asked the U.S. side that the NOFO be implemented in a way that will not lead to increased uncertainties for businesses, intervention in business management or increased cost of investment in the U.S.," Ahn told reporters.
"In addition, our government emphasized that increased uncertainty due to the NOFO is not desirable for our companies' investment in the U.S. or cooperation between South Korea, Japan and the U.S. on semiconductor supply chain," he added.
Seoul has also asked the U.S. to make sure the chips act will not undermine business operations of South Korean chipmakers in China, Ahn said.
The chips act bars chipmakers that receive U.S. subsidies from making new investments in China for a decade.
Alan Estevez, under secretary of commerce for industry and security, has also said South Korean firms entitled to U.S. subsidies -- Samsung Electronics Co. and SK hynix Inc. -- will likely have limits on the level of advanced semiconductors they can produce in China.
Source: Yonhap News Agency