Samsung Electronics and SK Hynix reject KEPCO $18.7B electricity prepayment
Samsung Electronics and SK Hynix just turned down a massive $18.7 billion up-front payment request from Korea Electric Power Corp. (KEPCO).
The money was supposed to help build new electricity infrastructure for South Korea's planned semiconductor mega clusters, but both companies felt it was too risky given unpredictable chip demand and huge costs.
KEPCO sought prepayment for power upgrades
KEPCO wanted the chip giants to prepay their future electricity bills to fund big infrastructure upgrades, something crucial for energy-hungry semiconductor plants.
But with chip demand on shaky ground, Samsung and SK Hynix weren't ready to commit that kind of cash up front.
Their refusal highlights just how tough it is right now for South Korea's semiconductor industry to plan (and pay) for growth when the future feels so uncertain.