US inflation bill "causing trouble"? Korean media: Chip 4 alliance or failure

In March this year, fearing the rapid development of the chip industry in Chinese Mainland, the United States proposed to form the Chip 4 Alliance to three major chip manufacturers in South Korea, Japan and Taiwan, China. According to South Korean media, Seoul Economic Daily, at a meeting on Tuesday, American officials mentioned strengthening their wafer manufacturing base in the United States. South Korea is discussing solutions to strengthen the supply chain with the United States, Japan, and major material and equipment suppliers.

It should be noted that Korean media quoted industry insiders as saying that due to the recent enactment of a bill by the United States, differences among alliance members have been triggered. According to the report, with the implementation of the Inflation Reduction Act (IRA) in the United States that discriminates against electric vehicles in South Korea, there is a possibility of the collapse of the Chip 4 alliance. Coincidentally, Bloomberg reported earlier this month that an anonymous senior South Korean official said that the South Korean side believes that the latest US Inflation Reduction Act is a "betrayal" to the South Korean side, which may complicate economic and security cooperation between the United States and South Korea.

Officials from the South Korean Ministry of Industry, Commerce, and Resources declined to comment on the speculation.