K-Semiconductor Shakes on AI Regulation Concerns... Electric Vehicles 'Hopeful'

[Anchor]

While the Democratic Party is pushing to tighten regulations on data centers out of concern over rising electricity bills, it is supporting the expansion of subsidies for electric vehicles.

Mixed fortunes are expected for our companies and industries, and reporter Choi Seung-hun has taken a closer look.

[Reporter]

Texas is projected to become the top region accounting for 30% of all electricity used by data centers across the United States by the year after next.

However, the newly elected Democratic governor has vowed to halt all data center construction immediately upon taking office.

[Gina Hinojosa / Governor-Elect of Texas, USA: We will halt all data center approvals until laws are in place to protect residents.]

This is because complaints have persisted that each data center devours massive amounts of electricity equivalent to what a small town uses, and residents would end up sharing the costs of expanding power plants and transmission grids through their electricity bills.

[Cyrus Reed / Texas Environmental Group Activist (March): Corporate lobbyists have been pushing hard to ensure that corporations do not pay their fair share.]

Such movements are taking place across the United States.

Among the 36 candidates who have won governor races or are leading in vote counts, 34 favor regulating data centers, and 12 have pledged to halt construction altogether.

Analyses suggest that construction of around 1,000 data centers could be suspended or delayed across the United States.

Consequently, domestic companies supplying semiconductors—such as Samsung Electronics and SK Hynix—as well as other domestic firms providing electrical equipment, could take a hit.

[Lee Joon / Director, Strategic Industry Research Center, Korea Institute for Industrial Economics and Trade: Supply and demand could loosen up somewhat. Prices would naturally drop, which would impact profitability. That is the scenario we are most concerned about.]

On the other hand, domestic automotive companies such as Hyundai Motor and Kia are pinning hopes on the momentum to revive electric vehicle purchase subsidies, which has been led by Democratic lawmakers.

KOTRA forecasted that since both the Democratic and Republican parties have a strong determination to foster the power and shipbuilding sectors, it could present an opportunity for us.

(Video Editing: Lee So-young, Design: Park Tae-young, Screen Source: Climate Justice Alliance, X 'Gina Hinojosa')