SEOUL (Reuters) – Standards to qualify for brand new U.S. semiconductor subsidies might be “burdensome” for corporations reminiscent of Samsung Electronics (OTC:) Co Ltd and SK Hynix Inc, South Korea’s commerce minister mentioned on Thursday.

Circumstances embody sharing extra revenue with the U.S. authorities, and three trade sources mentioned the appliance course of itself might expose confidential company technique.

Subsidies would come from a $52 billion pool of analysis and manufacturing funds earmarked underneath america’ so-called CHIPS Act, for which the Commerce Division introduced guides and templates this month.

SK Hynix father or mother SK Group plans to take a position $15 billion within the U.S. chip sector, together with to construct a complicated chip packaging manufacturing unit, and has mentioned it’s contemplating making use of for funding. Samsung (KS:) is constructing a chip plant in Texas that would value over $25 billion and has mentioned it’s reviewing the rules.

Nonetheless, funding functions might require detailed value construction data in addition to projected wafer yields, utilisation charges and worth adjustments, which three Korean chip sources advised Reuters was akin to revealing company technique.

“All of that is confidential data. A very powerful factor in chips is value construction. Specialists will have the ability to inform our technique at a look,” mentioned one of many sources, who declined to be recognized as a result of sensitivity of the matter.

America’ subsidy provisions ought to replicate the opinions of the federal government and corporations of South Korea so they don’t impose any undue burden on these corporations, South Korean Commerce Minister Ahn Duk-geun mentioned in a press release on Thursday.

Ahn’s remark got here from a gathering with United States Commerce Consultant Katherine Tai in South Korea, a number one chipmaking nation and main investor within the U.S. chip sector.

The U.S. Division of Commerce will settle for subsidy functions for modern chip services from March 31, and for current-generation, mature-node and back-end manufacturing services from June 26.