Samsung Electronics Co. and SK hynix Inc. are readying to comply with U.S. demand to submit information on chip order book, production and inventory status quo, while withholding sensitive management information with the backing of the Korean government.

The Ministry of Trade, Industry and Energy confirmed Monday that a high-level delegation led by Kim Jeong-il, chief of the Office of International Trade and Legal Affairs, was visiting Washington this week to speak on behalf of Korean chipmakers in response to the request from the Joe Biden administration on chip suppliers to submit information on inventories, sales figures and list of customers by Nov. 8.

The U.S. so far claims submission of the information is voluntary, but the Biden administration is said to be mulling invoking the Defense Production Act (DPA) or other measures upon incompliance.

Korean chipmakers worry leak in the information on their competitiveness in production and order book could fall in the hands of rivals or finished goods makers to disadvantage them in future negotiations.

The U.S Department of Commerce in September requested global semiconductor companies with factories in the country to share management information to “help improve trust and transparency within the global supply chain” and resolve protracted chip shortages.

During the three-day visit from Monday (local time), Kim met with Jeremy Pelter, deputy under secretary at the Bureau of Industry and Security of the Department of Commerce.

Kim raised the potential danger from information sharing and asked Korean companies to benefit from the federal government chip support under the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act.

By Oh Chan-jong and Lee Soo-min

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]