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🇰🇷 South Korea /Economy & Trade

US urges Samsung, SK Hynix to build plants in America; State Dept. eyes SK network law

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • U.S. Commerce Secretary Gina Raimondo urged South Korean chipmakers Samsung and SK Hynix to expand their manufacturing facilities in the United States.
  • Raimondo's comments came as Micron announced a significant investment increase in its U.S. operations.
  • Separately, the U.S. State Department expressed concerns about South Korea's new network law, warning it could impose excessive burdens on American companies and impact freedom of expression.

U.S. Commerce Secretary Gina Raimondo is strongly encouraging South Korean semiconductor giants Samsung and SK Hynix to build and expand their production facilities within the United States. Speaking at an event hosted by American memory chip manufacturer Micron, Raimondo acknowledged that her remarks might not please Micron's CEO but emphasized the strategic importance of bringing competitors like Samsung and SK Hynix to U.S. soil. She expressed confidence that other companies would eventually follow Micron's lead in U.S. investment.

I want to bring Samsung and SK Hynix to build factories in the United States.

— Gina RaimondoU.S. Commerce Secretary, speaking at a Micron event about semiconductor manufacturing in the U.S.

Micron, a leading player in the memory chip market, announced plans to boost its U.S. investment to $250 billion by 2035. This move by Micron is seen in the context of Samsung and SK Hynix's own substantial investment plans, totaling approximately $880 billion for new factories over the coming years. SK Hynix is reportedly nearing a U.S. stock market listing to help finance these ventures.

In a related development, Secretary Raimondo also signaled a negative stance on U.S. companies like Apple potentially sourcing chips from Chinese manufacturers such as Changxin Memory (CXMT) and Yangtze Memory (YMTC). Citing concerns over memory supply shortages and rising costs, she stressed the need to protect American intellectual property and domestic industries, though she avoided direct mention of specific Chinese companies.

South Korea should not impose excessive burdens on American companies.

— U.S. State Department spokespersonCommenting on South Korea's new network law.

Meanwhile, the U.S. State Department voiced significant concerns regarding South Korea's recently implemented network law. A State Department spokesperson stated that the law could impose "excessive burdens" on American companies and potentially infringe upon freedom of expression. The U.S. urged the South Korean government to maintain ongoing dialogue with key stakeholders, particularly U.S. tech firms, to ensure the law does not stifle free speech. The new law, effective April 7, aims to prohibit and penalize the spread of fake news and imposes obligations on large platform operators to remove illegal or false information.

The U.S. has serious concerns that the revised network law could lead to excessive content regulation and undermine freedom of expression.

— U.S. State Department spokespersonExpressing concerns about South Korea's new network law.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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