South Korea’s trade ministry said on Wednesday that the United States’ proposed rules to prevent $52 billion in chip funding from being used by “countries of concern” will not force recipients to shut down their China factories, reports Reuters. The US Commerce Department on Tuesday proposed limits for recipients of US chip manufacturing and research funding, including limits on investing in expansion in countries such as China and Russia.
The world’s largest and second-largest memory-chip makers, Samsung Electronics and SK Hynix, have chip production facilities in China. Samsung is building a chip plant in Texas that could cost more than $25 billion, while SK Hynix parent SK Group announced last year plans to invest $15 billion in the US chip industry. Both may apply for funding.
The proposed rules for funding recipients limit chip production capacity growth in China to 5% over 10 years as measured by wafers, and 10% for older legacy chips, the trade ministry said.