As part of the probe, the Commerce Department is evaluating the “feasibility of increasing domestic semiconductors capacity” in order to reduce reliance on imports and whether additional trade measures, including tariffs, are “necessary to protect national security,” according to a Federal Register notice put online last month.
In April, Washington embarked on a broad investigation into semiconductor-related imports, including chip components like silicon wafers and chipmaking equipment, as well as downstream products that contain semiconductors, under Section 232 of the US Trade Expansion Act of 1962, which can allow the imposition of tariffs on imports deemed a threat to its national security.
While underscoring the existing balance in semiconductor and chip-manufacturing equipment trade between the two countries, Seoul raised concerns in the letter that Washington’s additional trade measures on chip tech imports could have adverse effects on both US investment in its artificial intelligence infrastructure and planned US-based investments by Korean semiconductor firms.
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