Samsung, SK hynix comply partially with US request

The U.S. government's website for the public to view global chipmakers' data shows the information submitted by HP and other multinational companies. The data submitted by Samsung Electronics and SK hynix on Tuesday, was not released as of 5 p.m. on the same day. Screenshot from regulations.gov

By Yi Whan-woo

As was widely expected, Samsung Electronics and SK hynix, the world's top two memory chipmakers, each submitted their semiconductor data by the deadline (Nov. 9, 1400 KST) set by the U.S. Department of Commerce.

However, they did not submit classified information, such as the names of clients and inventory levels.

Samsung Electronics did not provide any comments following the submission.

SK hynix, said that its decision to submit semiconductor data to the U.S. government was the result of extensive consultations with the U.S. Department of Commerce and thorough considerations of other circumstances, such as the protection of customer information.

The U.S. government hinted that it may ask the two Korean chipmakers to submit more information if the level of semiconductor data turned in so far fails to meet its expectations for resolving the chip shortage and ensuring the resilience of global chip supply chains.

Washington had initially asked Samsung, SK and other top-tier tech firms to submit classified semiconductor data. But the request faced skepticism from Korea because it focused more on client-related issues and raised concerns over violating non-disclosure agreements (NDA).

The data requested earlier included inventories, backlogs, delivery times, procurement practices and measures companies were taking to increase chip output, as well as a list of top customers.

Samsung and SK teamed up with the finance and trade ministries to ensure the U.S. government that they will offer all the assistance necessary to fix the supply chain issue in return for allowing them to provide a more limited scope of semiconductor data.

A day before the deadline, Taiwan's foundry chip king TSMC had completed the submission of semiconductor data. But TSMC omitted sensitive customer data.

On the government level, the Minister of Trade, Industry and Energy Moon Sung-wook flew to Washington, D.C. on Tuesday to discuss semiconductor supply chains. The minister is scheduled to meet Commerce Secretary Gina Raimondo and Energy Secretary Jennifer Granholm.

Industry sources said that the government officials will convey concerns that the additional provision of chip data will not help the Washington-Seoul alliance. On a related note, Raimondo warned that if companies do not respond to the request, the U.S. will use “other tools in our tool box that require them to give us data.”

Seoul and Washington have also agreed to establish a new director-level dialogue channel for regular discussions on semiconductor issues. Sources said that the government should fully capitalize on the dialogue and make sure that what Samsung Electronics and SK hynix submitted, Tuesday, is “the best they can do.”

Shin Yul, a political science professor at Myongji University, urged the government “not to overlook the chipmakers' concerns and intervene only in the last minute.”

“The issues are linked to national security, meaning that they are too big to be handled by the companies on their own,” he said.