Calls for US to review rule for chip subsidies

South Korea asked the United States to review the rule that prevents recipients of US funding from building new facilities in such countries beyond 5% of existing capacity. — Reuters

SEOUL: South Korea has asked Washington to review its criteria for new semiconductor subsidies, concerned over the impact of rules to limit chip investment in countries such as China, a US public filing shows.

In March, the US Commerce Department proposed rules to prevent China and other countries it deems to be of concern from tapping funds of US$52bil (RM237bil) earmarked for semiconductor manufacturing and research under the so-called Creating Helpful Incentives to Produce Semiconductors (Chips) and Science Act.