South Korea asks US to review China rule for chip subsidies

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 U.S. public filing showed.

In March, the U.S. commerce department proposed rules to prevent China and other countries it deems to be of concern from tapping funds of $52 billion earmarked for semiconductor manufacturing and research under the so-called CHIPS Act.

A leading chipmaker and major investor in the U.S. chip sector, South Korea asked the United States to review the rule that prevents recipients of U.S. funding from building new facilities in such countries, beyond 5% of existing capacity.