Critics of "toxin provisions" in U.S. semiconductor support law say "support requirements should be revisited."

The Washington Post published a comment criticizing the US Biden administration for including multiple items in the semiconductor holding law that supports semiconductor companies, localized production, and research and development investment.

If companies such as Samsung Electronics and TSMC find it difficult to accept the sticker from the Ministry of Commerce, then they should legally file a case to establish their own semiconductor systems in the United States.

According to the "Washington Post" report on the 23rd, the actual effect of the semiconductor support law passed by the U.S. Congress last year with a backup deadline has been questioned.

This is because the nature and objectives of the law have changed ambiguously as the U.S. government and the ruling Democratic Party have added various provisions or regulations to the law that have nothing to do with semiconductors.

The Washington Post criticized the move in an op-ed by Stephen Ratner, an economist who worked on the fiscal policy under former President Pei. Department provides advice.

Ratner emphasized that the biggest lesson he has learned from working with the Obama administration is to focus on key goals in major policies. This means that we should avoid diverting our abilities, no matter how valuable they may be, to things that are counter to their original purpose.

This runs counter to the recent policy movement of the Biden administration with regard to the Semiconductor Support Act.

President Joe Biden is trying to achieve various goals at the same time, such as establishing a semiconductor self-sufficiency system in the United States and strengthening technological strength, revitalizing the economy and controlling China's semiconductor industry, improving welfare through subsidies, and activating labor unions for semiconductor companies.

According to the semiconductor subsidy guidelines issued by the Ministry of Commerce, supported companies must agree to share excess profits with the United States, promote employee benefits, and support trade union activities. Investment in semiconductor factories in China is also restricted.

Ratner cited the content of those Commerce Department guidelines, criticizing them as a significant departure from the original intent of the bill to support the semiconductor industry.

Subsidy evaluation criteria also include the conditions under which investments in semiconductor factories should open up employment opportunities for minorities, veterans and women and help improve economic inequality.

Of course, companies such as Samsung Electronics and TSMC, which have been expecting government support to build semiconductor manufacturing plants in the United States, have difficulty meeting all these criteria at the same time.

Criticism continues despite Commerce Department rules limiting shareholder returns to supportive businesses. These conditions correspond to factors that undermine the free decision-making of firms.

In the comments, Ratner argued that "the U.S. government needs to come up with a better strategy for dealing with the semiconductor war with China" and that "the bill needs to be reviewed in a way that substantially revises the stringent requirements."

There are also orders for the U.S. government to pay more attention to corporate voices through the Semiconductor Support Act to achieve its original purposes, such as revitalizing manufacturing and building a semiconductor supply chain.

That's because companies like TSMC say it's more costly to build and operate semiconductor factories in the U.S., and the Biden administration hasn't responded positively to those demands.

The South Korean government has stimulated Samsung Electronics' 30 trillion won investment with aggressive support policies, while uncertainty over the U.S. semiconductor support law has also strengthened his argument.

"The U.S. government is now in an economic power struggle (with other countries). We have to work harder to win," Ratner said.