The U.S. government is happy to help semiconductor companies build new fabs in the country, but it sets fairly stringent requirements for companies getting funding under the CHIPS and Science Act. South Korean semiconductor makers, however, are frustrated by the need to provide detailed information such as fab capacity and expected yields. They see these requirements as a threat to their trade secrets. business korea.
As part of the grant application process, the U.S. Department of Commerce will provide companies with projected fab capacity by wafer type, capacity utilization, projected wafer yield, initial selling price, annual production volume, and projected annual production volume. We request that you submit details such as price changes that Companies seeking subsidies must also submit profitability metrics, such as projected cash flows, in an Excel file to validate the calculation methodology.
The official reason for requesting this data is to enforce a policy of forfeiting excess profits that companies earn over their expectations. However, metrics such as utilization and yield are considered trade secrets because they are key indicators of a chip maker’s competitiveness. Furthermore, the yield rate not only indicates technical prowess (or lack of technical proficiency), it also reveals the unit price. For memory manufacturers, unit cost is a key measure of effectiveness. For foundries, the unit price is not only their trade secret, but also that of their fabless customers.
The US DoC officially guarantees that trade secrets are not disclosed to any third party, but Korean companies have reason to be concerned. Leakage of these important trade secrets to US companies such as Intel could seriously harm Samsung Electronics and SK Hynix. Moreover, considering excessive profit sharing, trade union obligations, and restrictions on semiconductor investment in China, South Korean companies may not benefit from US subsidy initiatives and may lose more than they gain as a result. There is even
As a result, Korean companies eligible for subsidies are hesitant to apply. On the other hand, industry experts business korea Rising inflation and rising commodity prices have forced South Korean companies to apply for subsidies to spur investment demand. Additionally, South Korea’s relationship with the United States may also influence their decision.
Samsung Foundry is currently building a new EUV-ready fab near Taylor, Texas. The company originally planned to invest $17 billion, but inflation and rising costs may increase investment requirements. The fab is expected to begin production in the second half of 2024 and manufacture chips at the company’s 3nm and 4nm class nodes. The company is also considering building a large fab complex that could require a $192 billion investment, but it’s unclear if any formal decisions have been made.
SK Hynix probably won’t build a memory production fab in the US, but will build a state-of-the-art packaging facility in the US that is eligible for CHIPS subsidies.
“The US government’s demands may be excessive, but the US has its own semiconductor technology, including extreme ultraviolet exposure equipment.” business korea“Samsung Electronics’ growth in the non-memory sector will also require some US high-tech industries and high-level US workers, and Samsung Electronics will apply for semiconductor subsidies,” he said.
