South Korea Worries About Strings Attached to US Chip Subsidies
- US legislation is designed to incentivize foreign chipmakers
- The law imposes certain responsibilities to receive funds
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The US Chips Act imposes a number of onerous demands and still harbors a great deal of uncertainty for companies hoping to benefit from it, South Korea’s trade minister said in Seoul on Monday.
Lee Chang-yang, Korea’s minister of trade, industry and energy, set out three major concerns about the Chips and Science Act, a $50 billion plan that includes incentives for foreign chipmakers to set up factories within the US. Some of the specific requirements for it were set out last week, including the provision of childcare for workers and restrictions on investing in other countries or using funds from the Act to perform share buybacks.