SOUTH KOREA said its technology firms will provide some semiconductor data to the United States, following a request by the U.S. Commerce Department for companies in the supply chain to provide information on inventory and sales of chips.

South Korean firms are preparing for a “voluntary submission” of relevant information, the finance ministry said in a statement Sunday, adding that its tech giants have been negotiating with the United States on the extent of data to be submitted. It didn’t elaborate.

The U.S. Commerce Department in September asked global companies in the semiconductor supply chain to fill out questionnaires by Nov. 8 seeking information pertaining to the ongoing chip shortage.

While the request is voluntary, U.S. Commerce Secretary Gina Raimondo warned industry representatives that the White House might invoke the Defense Production Act or other tools to force their hands if they don’t respond.

In the questionnaire, chipmakers were asked to comment on inventories, backlogs, delivery time, procurement practices and what they were doing to increase output. The U.S. Commerce Department also requested information on each product’s top customers.

Washington’s request sparked a domestic controversy in South Korea, with critics condemning the United States’ demand of trade secrets.

South Korea’s Samsung Electronics and SK Hynix, the world’s two biggest makers of memory chips, plan to leave out detailed information when supplying Washington with data related to the global chip shortage as they want to protect trade secrets, Reuters quoted two sources as saying.

“The scope of the U.S. data request is such that if all the information it wants is leaked, it would undermine competition and make it really easy for a client to choose one chipmaker over another,” said one of the sources.

Unlike made-to-order chip manufacturers, memory chipmakers stand to lose much more in terms of competitive advantages if information relating to inventories and pricing is leaked as “one design is used in a lot of devices”, said one source.

Semiconductors have become a major geopolitical concern, as the United States and China seek to secure supply chains for chips that are vital to every aspect of digital life, from data centers to smartphones.

U.S. President Joe Biden wants to bolster U.S. trade links through allies, such as the Netherlands and South Korea, to avoid chip shortages in times of crisis.

The South Korean government will solidify its semiconductor supply chain partnership with the United States “by continuing high-level communications,” the South Korean finance ministry said Sunday.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, said yesterday it had not disclosed detailed information on clients in its response to a U.S. chip data request.

TSMC said it remained “committed to protecting our customers’ confidentiality as always, ensuring no customer-specific information is disclosed in the response.”

(SD-Agencies)