South Korea Says U.S. Chips Act Subsidies Have Too Many Requirements

SEOUL—The U.S. Chips Act is dangling billions of dollars in subsidies in front of the world’s biggest semiconductor manufacturers, but South Korea says there are too many strings attached.

The conditions for receiving the subsidies unveiled last week are putting two of South Korea’s biggest chip makers—Samsung Electronics Co. and SK Hynix Inc.—in a difficult position as they decide whether to apply for the federal funding, government officials and industry analysts said.