US seeks share of Korean chipmakers' 'excess profits'
The U.S. government has reportedly requested a share of the profits from South Korean semiconductor giants Samsung and SK hynix, citing the significant role American demand played in their recent financial success. Korean officials have expressed skepticism, emphasizing that industry matters should be governed by commercial reasonableness.
Why it matters
This represents a potential shift in international trade relations regarding the semiconductor industry and the freedom of private companies to retain profits generated from global demand.
A Samsung Electronics office in Seocho District, Seoul, left, and SK hynix headquarters in Icheon, Gyeonggi Province / Korea Times photo by Bae Woo-han, Yonhap The U.S. is seeking a share in Korean semiconductor companies’ enormous profits from the global artificial intelligence (AI) chip boom, citing strong U.S. demand for Korean chips, according to an industry source. This comes amid debates here on what defines “excess” gains, whether they should be shared with subcontractors or even with the public, and how much each subcontractor or contributor is entitled to. The industry source familiar with the matter said during a meeting last month that Rick Switzer, deputy United States Trade Representative (USTR), told Korea's Trade Minister Yeo Han-koo that the U.S. side deserves a share of the massive profits of SK hynix and Samsung Electronics.
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