US eases semiconductor subsidy rules, Samsung is a big beneficiary

The US is reportedly making semiconductor subsidy rules easier, which are set to allow Samsung for getting benefited, even with operating plant in China. Recently, the US Department of Commerce announced detailed regulations of the “guardrail (safety device) clause.”

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The guardrail (safety device) clause prevents chip makers receiving subsidies under its semiconductor law from investing in China and other countries for 10 years. As reported, a significant part of detailed regulations have been relaxed through close consultations between the the US and South Korean govt.

The US director of the Commerce Department’s Semiconductor Law Program assured that the United States is not trying to become self-sufficient in semiconductor production. The rules aims to support a sound global semiconductor ecosystem in response to a wide range of threats.

Recipients of federal subsidies will also be prohibited from participating in joint research or licensing technology with foreign-related organizations. It emphasized that this measure was aimed at hostile countries such as North Korea, China, and Russia.

On questioning over the one year grade period for subsidy approval to Samsung, a US official said that the intention of the Semiconductor Act is to prevent the expansion of semiconductor production facilities or the construction of new facilities in China and elsewhere.

“We understand that some companies may need to upgrade their skill level to stay viable. Upgrades to that level are possible as long as companies comply with export controls under the Semiconductor Science Act and have export control authority permission.” (Via Chosun)