World’s Top Chipmakers Provide Data to U.S. as Deadline Arrives

Nov 8, 2021

World’s Top Chipmakers Provide Data to U.S. as Deadline Arrives

Several chipmakers have already replied to a US request for supply chain information to aid in the resolution of the worldwide chip shortfall, with several of the world's major suppliers indicating they will not give sensitive data.

According to a business representative, Taiwan Semiconductor Manufacturing Co. has already provided its response, guaranteeing that no customer-specific information was published. According to a US government website, other companies such as Micron Technology Inc., Western Digital Corp., and United Microelectronics Corp. have also submitted applications ahead of the Monday deadline.

South Korean IT giants, including Samsung Electronics Co. and SK Hynix Inc., are preparing for a "voluntary submission" of pertinent data, according to the finance ministry, which added that the corporations have been discussing with the US on the scope of data to be supplied. According to local media sources, the corporations will only "partially cooperate" with the data request.

In September, the US Department of Commerce sent questionnaires to firms in the semiconductor supply chain, asking for information on the continued chip shortfall. Despite the fact that the request is optional, Commerce Secretary Gina Raimondo cautioned business leaders that if they do not reply, the White House may utilize the Defense Production Act or other mechanisms to compel their hand.

The request from Washington has prompted debate in Taiwan and South Korea, with some worrying that the US is requesting trade secrets. There have also been fears in China that the US may prosecute Chinese enterprises using materials given by TSMC and others.

Chipmakers were asked to respond to questions on stocks, backlogs, delivery times, procurement methods, and what they were doing to boost output in the survey. The Commerce Department also wanted to know who the top clients were for each product.

In an email to Bloomberg News on Sunday, TSMC spokesperson Nina Kao stated that the company remained dedicated to "safeguarding customers' confidentiality as always."

TSMC and Samsung Electronics, the world's two largest contract chipmakers, service a wide range of customers, including automobiles. Over the last year, a continuous scarcity of essential semiconductors has wreaked havoc on a wide range of businesses, especially automobile production, which is a major contributor to the US economy, but there are hints that the supply shortfall may have peaked.

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South Korean CBDC – 7 South Korean Banks to Join Issuing The Digital Currency Since cryptocurrencies arrived on the financial scene and changed how people transact and transfer money, central banks have become more interested in developing their own virtual payment systems. After Russia, China, Nigeria, India, and Jamaica, South Korea is taking a major step toward introducing its own Central Bank Digital Currency in an upcoming pilot program involving the public and some major banks. The initiative aims to test the feasibility of a digital currency within the existing financial system, enabling a limited number of citizens to transact with CBDC at selected merchants and Points of Sale. This move aligns with the global trend of central banks exploring digital currencies to enhance payment efficiency, reduce transaction costs, and modernize the financial landscape. South Korea CBDC Pilot Program Bank of Korea (BOK), in collaboration with financial regulators, announced an initiative to test the rolling out of CBDC involving seven major banks and 100,000 participants. The pilot program “Project Hangang” is scheduled to run from April to June 2025, focusing on testing deposit tokens issued by banks and backed by the CBDC. These banks include KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, NH NongHyup Bank, Industrial Bank of Korea (IBK), and Busan Bank. These tokens will be used for transactions in both online and offline retail environments, allowing the government and financial institutions to evaluate their effectiveness. Users and Merchants Participation The BOK is expected to announce the project by the end of March, asking 100,000 South Koreans to participate in the pilot and convert their traditional bank deposits into digital tokens for payments. Individuals will be limited to a maximum holding of 1 million WON (approximately $687) and a total transaction cap of 5 million WON during the trial’s duration. Various merchants, including convenience stores, supermarkets, coffee shops, and online platforms, will accept these tokens as payment. Notable participants include 7-Eleven, Hanaro Mart, Ediya Coffee, Silla University, and Hyundai Home Shopping. This will help assess the practicality and usability of the CBDC across different retail settings. Global Adoption of CBDC The South Korean CBDC initiative is part of a broader global trend, with many countries exploring digital currencies to modernize their financial systems. The Bank for International Settlements (BIS) has been actively promoting CBDC projects worldwide, with major economies such as China, the European Union, and the United States conducting their own trials. China’s digital Yuan e-CNY is already in an advanced phase, with widespread adoption in various sectors. The European Central Bank is also working on a digital Euro, while the US Federal Reserve is researching the potential implications of a digital Dollar. These initiatives aim to improve payment efficiency, enhance financial inclusion, and strengthen monetary policy frameworks. Conclusion South Korea’s CBDC pilot marks a significant step toward digital financial transformation. By involving the public, key banking institutions, and merchants, the trial will offer critical data on the viability of digital currencies. As more countries explore CBDCs, these findings could influence future implementations worldwide, paving the way for a more efficient payment system.

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South Korean CBDC – 7 South Korean Banks to Join Issuing The Digital Currency

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