US presses South Korea for memory chip plants and supply guarantees

The United States is pressing South Korea and its semiconductor companies to build memory-chip production facilities on U.S. soil and ensure stable supplies, while expressing dissatisfaction with the roughly 800 trillion won Honam Semiconductor Cluster project, valued in reports at about $560 billion to $578.5 billion. The pressure contributed to a 2.66% drop in South Korea’s KOSPI to 6,518.92, with SK Hynix falling 5.03% to 1.587 million won and Samsung Electronics declining 2.92% to 249,500 won. Washington’s concern centers on delays in Korean companies’ planned U.S. investments rather than opposition to the domestic cluster. The demands were raised during Trade Minister Kim Jung-kwan’s four-day U.S. visit, also rendered Kim Jeong-kwan in earlier reporting, and Seoul plans to announce an initial group of U.S.-bound projects in September while maintaining that the semiconductor demands are separate from the previously agreed $350 billion U.S. investment arrangement. Samsung Electronics and SK Hynix together control more than 70% of the global DRAM market, increasing the potential two-front investment burden as political and corporate consultations intensify.

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