The Ministry of Trade, Industry and Energy announced that it will continue detailed discussions on the guardrail provisions of the U.S. Department of Commerce's Semiconductor Incentive Program.
On the 1st, the Ministry released a press briefing introducing the application procedures for financial incentives for semiconductor manufacturing facilities announced by the U.S. government and stated this intention.
According to the announcement, eligible recipients are companies planning to invest in the construction or expansion of semiconductor manufacturing facilities for either the entire process or post-processing stages in the United States. These companies can receive support in the form of grants, loans, or loan guarantees.
Companies interested in applying for incentives can submit a letter of intent to the U.S. Department of Commerce starting February 28 (local time). Subsequently, applications for advanced manufacturing facilities can be submitted from the 31st of this month, and for other current generation, mature node, or post-processing manufacturing facilities, applications can be submitted starting June 26.
Upon receiving applications from companies, the U.S. Department of Commerce will comprehensively review the submissions based on ▲economic and national security considerations ▲commercial viability of the investment plan ▲financial status and investment execution capability of the applicant company ▲workforce development and other ripple effects. After in-depth discussions and negotiations with the companies, the scale and method of incentive support will be finalized.
However, under the provisions, companies must agree to a pact restricting investments that expand semiconductor production capacity in countries of concern such as China for the next 10 years. Detailed related matters will be announced later by the U.S. government.
An official from the Ministry stated, "Regarding matters that could impose excessive burdens on our companies’ management, such as the guardrail provisions, we have actively expressed our position to the U.S. Department of Commerce and other relevant authorities after discussing countermeasures with the industry," adding, "We will continue to consult with U.S. authorities to ensure that the interests of our companies are sufficiently reflected during the process of establishing detailed guardrail regulations."
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