Samsung, SK Hynix reject KEPCO’s $23 billion power prepayment proposal, document shows

Samsung Electronics and SK Hynix have dismissed a proposal by Korea Electric Power Corp (KEPCO) for a 25 trillion won ($23.6 billion) upfront payment to support power supplies for semiconductor mega clusters, according to a document disclosed to a lawmaker. The chipmakers informed the state-owned utility that accepting the proposal would be problematic after conducting internal assessments, as revealed by the South Korean lawmaker's office to Reuters.

The companies expressed doubt about the necessity of such substantial upfront payments, citing concerns over the long-term viability of semiconductor demand. The South Korean official who spoke on condition of anonymity emphasized the sensitivity of the issue. Samsung Electronics and SK Hynix did not provide additional comments.

Earlier in September, South Korean newspaper Chosun Ilbo reported that KEPCO had proposed the chipmakers make the advance electricity payment to enable the utility company to invest in infrastructure to power new chip fabrication plants.