SEOUL, May 24 Reuters South Korea has asked Washington to review its criteria for new semiconductor subsidies, concerned over the impact of rules to limit chip investment in countries such as China, a U.S. public filing showed.

In March, the U.S. commerce department proposed rules to prevent China and other countries it deems to be of concern from tapping funds of 52 billion earmarked for semiconductor manufacturing and research under the socalled CHIPS Act.

A leading chipmaker and major investor in the U.S. chip sector, South Korea asked the United States to review the rule that prevents recipients of U.S. funding from building new facilities in such countries, beyond 5 of existing capacity.

The Republic of Korea believes 39;guardrail provisions39; should not be implemented in a manner that imposes an unreasonable burden on companies investing in the United States, South Korea said, using its official name.

The filing gave no further details, but the South39;s Yonhap news agency said Seoul had asked to raise the limit to 10.

South Korea39;s industry ministry declined to comment.

The United States has said the incentives aim to help restore America39;s leadership in semiconductor manufacturing, boost employment and ensure economic and national security.

South Korea39;s Samsung and SK Hynix, the world39;s top two makers of memory chips, have invested billions of dollars in chip factories in China.

Samsung is building a chip plant in Texas that could cost more…