seniorspectrumnewspaper – South Korea’s presidential office has dismissed speculation that the United States plans to take equity stakes in Korean semiconductor companies receiving CHIPS Act subsidies. The statement follows media reports and public comments suggesting Washington might seek stock in foreign firms benefiting from U.S. funding.
Presidential spokesperson Kang Yu-jung called the rumors “baseless,” emphasizing that no Korean firm has received such subsidy-linked shareholding proposals. “No company has been approached, and converting subsidies into equity doesn’t apply,” Kang stated. Her remarks directly responded to speculation triggered by recent comments from U.S. Commerce Secretary Howard Lutnick.
Lutnick said in a CNBC interview that the U.S. “should get an equity stake” in companies receiving CHIPS funding. Reuters added that President Donald Trump “liked the idea.” These remarks led to suggestions that the U.S. could apply a similar model to foreign recipients, including Korean firms.
Samsung and SK hynix, South Korea’s two semiconductor giants, are both expanding manufacturing operations in the United States. Samsung is building a $37 billion chip plant in Taylor, Texas, and was awarded $4.75 billion in subsidies in 2024. SK hynix is developing a $3.87 billion advanced packaging plant in Indiana, backed by $485 million in federal support.
Despite these investments, Kang emphasized that discussions of equity conversion are premature. She added that companies had independently confirmed no outreach from the U.S. regarding ownership arrangements.
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The South Korean government suggested that political motives may have driven the rumors, which emerged just before a scheduled summit with President Trump. Kang said, “I suspect the other side spread various rumors as a form of leverage,” indicating that they timed the release to influence ongoing negotiations.
Analysts believe the speculation originated from the U.S. government’s $8.9 billion equity deal with Intel. That deal allowed Washington to acquire a 9.9 percent passive stake in the chipmaker through CHIPS Act funding. Some reports claimed that the U.S. might pursue similar arrangements with Samsung or other major recipients.
However, South Korean officials made it clear that they would not welcome such a move. Specifically, Digitimes linked the equity speculation to discussions around the Intel deal, but the Blue House quickly issued a public denial of any U.S. interest in acquiring Samsung shares.
Moreover, the potential for U.S. equity stakes in South Korean tech firms would raise significant national concerns. Notably, Samsung is widely regarded as a strategic pillar of the South Korean economy. In fact, some estimates say the company contributes roughly 20 percent of the country’s GDP. Therefore, policymakers remain cautious about allowing even passive foreign ownership.
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While some market experts argue that a U.S. stake could improve market access and soften tariffs, the political cost could be high. With the U.S. maintaining a 25 percent tariff on many imported goods, Seoul may leverage upcoming talks to secure trade concessions without compromising corporate sovereignty.
