President Yoon Suk Yeol of South Korea convenes a strategy discussion to advance the chip and battery industries
The South Korean economy, which is mostly based on commerce and chip exports, has slowed down in response to a deteriorating global economy and continuingly reduced demand from China.
A national strategy meeting was called by South Korean President Yoon Suk Yeol at the beginning of the month in an effort to increase the competitiveness of the nation’s semiconductor and rechargeable battery industries. Following a period of economic downturn, the central bank of South Korea is expected to maintain stable interest rates in order to assist the economy. The commerce and chip export industries, which are crucial to South Korea’s economy, have been hindered by a slowing global economy and declining Chinese demand. In addition, rising interest rates have limited domestic consumption.
Samsung Electronics also has concerns about the criteria for the US government’s new semiconductor subsidy requirements. Sharing excess profits with the US government is one of the requirements for the subsidies, and the application procedure itself can disclose sensitive corporate strategy. Yoon Suk Yeol requested that the US government take into account the worries of businesses over the “excessive level of information provision”.
Samsung is constructing a chip facility in Texas, while SK Group, the parent company of SK Hynix, aims to invest $15 billion in the US semiconductor industry. The expected wafer yields, utilisation rates, and price adjustments that may be required for funding applications might nevertheless expose business strategy.