US seeks share of Korean chipmakers' 'excess profits' (www.koreatimes.co.kr)

The U.S. is pursuing a share of the substantial profits generated by South Korean semiconductor giants SK hynix and Samsung Electronics in light of a booming global demand for AI chips. During a recent meeting, U.S. Trade Representative deputy Rick Switzer emphasized that American firms, due to their significant purchases of Korean semiconductors, should be entitled to a portion of the profits. This assertion raises questions about what constitutes "excess" profits and whether these should be distributed to subcontractors and even to the public, challenging existing norms in profit-sharing within the industry. This development is significant for the AI/ML community as it highlights the intense pressure and scrutiny surrounding semiconductor supply chains, especially as they support AI technologies. With semiconductor exports from South Korea experiencing meteoric growth—up 162.5% year-on-year—the U.S. is also advocating for Korean companies to invest directly in American manufacturing capabilities. This push aligns with ongoing efforts to localize semiconductor production in the U.S., underlining the geopolitical dynamics at play in the chip market and potential implications for future collaborations and investments in AI infrastructure.