Samsung, SK Hynix reject KEPCO's $19 billion power prepayment proposal, document shows

By SEOUL: Samsung Electronics and SK Hynix have rejected a proposal by Korea Electric ​Power Corp to make a 25 ‌trillion won ($18.7 billion) upfront payment to support power supplies for planned semiconductor mega clusters, according to a ​document submitted to a lawmaker. Here ​are some details: The two chipmakers told the ⁠state-run utility company it would be ​difficult to accept the proposal following internal ​reviews, according to the document, which was shared with Reuters by the office of lawmaker Lee Chul-gyu. The ​companies were unsure if such large upfront ​payments were necessary, citing uncertainty over the long-term durability ‌of ⁠semiconductor demand, a company official in Seoul told Reuters. The official spoke on condition of anonymity due to the sensitivity of the ​matter. Samsung Electronics ​and SK ⁠Hynix declined to comment. South Korean newspaper Chosun Ilbo reported earlier this ​month that KEPCO had proposed that ​the ⁠chipmakers make the advance payment for electricity expected to be consumed by new chip fabrication ⁠plants, ​in order to allow ​the utility company to invest in infrastructure to power ​the plants.