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US Seeking Separate Chip Equipment Export Standard for S. Korean Firms in China

Written: 2023-05-10 14:25:43Updated: 2023-05-10 15:08:42

US Seeking Separate Chip Equipment Export Standard for S. Korean Firms in China

Photo : YONHAP News

The United States, which has effectively banned exports of U.S.-made semiconductor equipment to factories in China, is reportedly looking to apply a separate standard for South Korean chipmakers operating production plants in China.

According to multiple sources on Tuesday, the U.S. Department of Commerce is consulting with relevant governments to reduce uncertainties for South Korean and Taiwanese firms and minimize supply disruptions, while maintaining its export control measures.

Under the separate standard, South Korean firms like Samsung Electronics and SK Hynix would be allowed to bring in U.S.-made equipment into China under certain criteria and without being bound by a time limitation, instead of the current one-year waiver.

An unnamed source said while the one-year waiver was more like a temporary expedient, the newly considered measure would permit long-term operation and provide time for South Korean chipmakers to upgrade their plants in China.

While it remains unclear exactly how Washington plans to set the new standard, it could exclude certain classes of equipment from entering China or introduce tools to prevent the transfer of South Korean firms' key technologies into China.

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