Semiconductors imported from South Korea to the United States were subsidized, the Commerce Department has ruled.

In a June 17 final affirmative determination the department calculated the net subsidy rates for the dynamic random access memory semiconductors (DRAMS) ranged up to 44.71 percent.

Imposition of countervailing duties to offset unfair subsidies requires final affirmative determinations from both the Commerce Department that subsidies were paid and from the U.S. International Trade Commission (USITC) that the imports injured or threatened U.S. industry.

The final USITC determination is expected by August.

The department calculated a 44.71 net subsidy rate for Hynix Semiconductors Inc. and assigned the same rate for all other companies with the exception of Samsung Electronic Co., Ltd., whose net subsidy rate was considered marginal or de minimis. As a result, the investigation into Samsung imports will be ended.

A subsidy is a grant conferred on a producer by a government.

The department took action against Korea in November 2002 after a U.S. producer of DRAMs had filed a complaint asserting that South Korean DRAM manufacturers received loan subsidies and other government support worth thousands of millions of dollars, according to press reports.

South Korea denied it had paid subsidies to DRAM manufacturers and threatened to take its case to the World Trade Organization if the United States and the European Union, which launched its own investigation,, impose countervailing duties on Korean memory chip imports.

From January through June 2002 U.S. imports from Korea were valued at $610.9 million for individual DRAMS, $726.1 million for DRAM memory modules and $13.3 million for DRAM wafers.

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

By: DocMemory
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