Samsung Electronics and SK Hynix reportedly rejected a 25 trillion won ($18.7 billion) infrastructure proposal from Korea Electric Power Corp. (KEPCO). The plan required chipmakers to provide upfront funding for power grids at new semiconductor clusters.
Samsung’s individual contribution would have totaled approximately 20 trillion won. The companies cited uncertainty regarding long-term semiconductor demand as the reason for the refusal.
Samsung Electronics shares fell 3.7% in Seoul on Monday following the news. KEPCO must now find alternative ways to finance infrastructure for AI-related power demands. Markets remain concerned that the dispute will delay future production growth.