Insight Online News
Seoul, Nov 4 : South Korea’s top two chipmakers — Samsung Electronics and SK hynix are expected to submit information on their chip businesses to the US government by the November 8 deadline, industry sources said.
In late September, the US Department of Commerce asked major chip companies and automakers to “voluntarily” share business information to address the global chip crisis, following President Joe Biden’s executive order to secure and strengthen America’s supply chains for key products.
Kim Ki-nam, Vice Chairman and CEO of Samsung’s device solutions division, said the company was “calmly” preparing answers to the request during a meeting with reporters at the Korea Electronics Show (KES) last week.
“We are internally reviewing the matter and are in close talks with the (South Korean) government,” said SK hynix CEO Lee Seok-hee, who also attended the event.
The information request by Washington has immediately spawned concerns about the possible leak of what chipmakers consider as major trade secrets, as questions touch upon a wide range of issues, including investment, inventories, pricing, customers and sales, reports Yonhap news agency.
It also raised questions on how to answer those sensitive questions while complying with filings and information disclosure rules required for publicly traded companies.
While the US government said the information sharing is “voluntary”, South Korean companies are under pressure to file the information as requested.
IANS / AGENCY