Samsung, SK Hynix reject US$18 billion power prepayment to fund new grids: reports
Local media says firms concerned about committing such large sums upfront given uncertainty
Local media reports claim that Samsung Electronics and SK Hynix have turned down a proposal from Korea Electric Power Corp (Kepco) for a US$18 billion power prepayment to fund the construction of new grids. The firms expressed concerns about committing such a substantial amount upfront due to uncertainty surrounding the prolonged semiconductor boom.
The plan, estimated at 25 trillion won (US$18 billion), aimed to address the growing demand from the semiconductor and artificial intelligence industries. Kepco's proposal would have seen the chipmakers pay the 25 trillion won over a year, with Kepco bearing interest on the remaining prepaid balances. The rejection of the deal would reduce Kepco's reliance on bond issuance for funding.
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Also reported by 4 other outlets
- Samsung, SK Hynix reject KEPCO's $19 billion power prepayment proposal, document shows brecorder.com
- Samsung, SK Hynix reject KEPCO’s $23 billion power prepayment proposal, document shows straitstimes.com
- Samsung, SK Hynix turn down KEPCO’s $19B power payment plan - report seekingalpha.com
- Samsung, SK Hynix reject KEPCO’s $19 billion power prepayment proposal, document shows investing.com
