Chipmakers Reject Power Prepayment

Samsung and SK Hynix reject KEPCO's massive power prepayment plan for chip plants

Samsung, SK Hynix, and Samsung Electronics have rejected a $19 billion power prepayment proposal from KEPCO, according to a document shared with Reuters by lawmaker Lee Chul-gyu. The chipmakers cited internal reviews and uncertainty over the long-term durability of the long term demand for semiconductor demand. The state-run utility company had proposed that the chipmakers make the advance payment for electricity expected to be consumed by new chip fabrication plants in order to allow KEPCo to invest in infrastructure to power the plants.