The Fair Trade Commission finalized the consent resolution for global semiconductor manufacturer Broadcom. The practice of requiring domestic set-top box manufacturers to use only its semiconductor components will be improved, and a 13 billion won cooperation fund will be established to support small semiconductor companies.
According to the Fair Trade Commission on the 3rd, Broadcom was investigated for allegedly tying transaction partners by requiring set-top box manufacturers to only use its system-on-chip (SoC) or limiting the use of competitor components. In response, Broadcom applied for the consent resolution scheduled for October 2024, which was finalized after going through a stakeholder opinion collection process.
Under the consent resolution, Broadcom will not be able to force domestic manufacturers to use specific components in the future or require them to purchase more than half of the transaction volume. It is also prohibited from suspending supplies or withdrawing benefits for refusals. Additionally, the company must report to the Fair Trade Commission annually until 2031 on the implementation of corrective measures through fair trade training for employees and the operation of a compliance program.
A cooperation plan was also included. Broadcom will donate a cooperation fund of 13 billion won to the Korea Semiconductor Industry Association, which will be used for operating training courses for semiconductor experts, supporting electronic design automation (EDA) software, and promoting small businesses. The plan aims to support over 40 small businesses annually for the next five years.
Previously, the European Union (EU) and the Federal Trade Commission (FTC) of the United States also addressed Broadcom's similar actions with consent resolutions and consent orders, respectively. The Fair Trade Commission plans to continue monitoring compliance in collaboration with the Korea Fair Trade Mediation Agency and will focus on unfair practices in the semiconductor system sector.
A Fair Trade Commission official noted, "The consent resolution aimed at correcting exclusive conditional transactions and supporting the growth of domestic small businesses will contribute to both improving transaction order and developing the industrial ecosystem," adding, "It was determined that promptly implementing the plan proposed by Broadcom is in the public interest."