Korean chip manufacturers demand an indefinite exemption from US export controls to China

News

Home - Hot News -

Author：netwing Time：2023-06-26 Browse：

According to Korean media reports, Korean chip manufacturers including Samsung Electronics and SK Hynix have requested the US government to consider "indefinite exemptions" from export controls to China in order for them to conduct business in China. Korean semiconductor manufacturers hope that the United States can indefinitely exempt export controls, or at least provide a longer grace period.
The Korean Herald reported on Monday that Korean chip manufacturers, including Samsung Electronics and SK Hynix, have submitted verified end-user authorization requests to the US Department of Commerce to export US made equipment to their production bases in China, citing sources.
The program aims to reduce the licensing burden on the industry by allowing US exporters to ship designated items to pre approved entities under general authorization, rather than multiple separate export licenses. Simply put, if approval from the US Department of Commerce can be obtained smoothly, Korean chip manufacturers will not need to seek duplicate authorization to continue exporting chip manufacturing tools to China.
Last October, the US government implemented a series of trade restrictions on China and established a one-year export exemption for chip manufacturers. Afterwards, officials from the United States and South Korea held intensive talks on how and under what conditions chip manufacturers can continue to operate in China. Korean chip manufacturers hope that the United States can indefinitely exempt export controls, or at least provide a longer grace period.
As the exemption period approaches, there is also news of an extension of the exemption, which has been confirmed by South Korean officials.
On May 9th, South Korean Trade Minister Lee Chang yan stated that the one-year exemption, which was originally due to expire in October this year, is expected to be extended for a "considerable period of time". At that time, reports believed that the US move would eliminate the main uncertainty that South Korean chip manufacturers were concerned about the future of their largest overseas manufacturing base.
The report pointed out that before the US strengthened export controls, Samsung Electronics and SK Hynix, two South Korean chip manufacturers, had been on the verified end-user authorization list. It should be noted that even on the end-user authorization list, Korean chip manufacturers will not be able to import the extremely ultraviolet (EUV) machines required to produce the world's most advanced storage chips.
Industry observers suggest that the United States may soon make a decision on this matter as US semiconductor equipment manufacturers need to plan their equipment production in Chinese factories of major clients such as Korean chip manufacturers.

Previous Article：Intel is rumored to receive nearly 10 billion euros in subsidies from the German government

Next Article：Chip business dragged down, Samsung's Q2 profit may plummet by 99%