South Korean media reveals that the US will set new standards for chip regulation!

Published on: 2023-05-12 15:11
Read: 0

South Korean media reported that after the United States strengthened its control over the export of chip equipment to Chinese Mainland, which caused anxiety in South Korea, the U.S. government is considering setting up new specifications and standards for chip manufacturers not in Chinese Mainland. In addition to being expected to benefit Korean factories such as Samsung Electronics and SK Hynix, Taiwan factories may also be exposed to rain and dew.



The South Korean Economic Daily and BusinessKorea reported that the United States Department of Commerce is discussing with South Korean officials to draw up another set of equipment import standards to strengthen the predictability of non Chinese Mainland chip manufacturers and minimize the interference to the global supply chain,


According to the new specification, Korean manufacturers such as Samsung Electronics and SK Hynix do not need to seek the permission of the US government regularly as long as the equipment imported into Chinese Mainland meets specific standards. Samsung Electronics operates a NAND flash memory chip factory in Xi'an, a chip packaging facility in Suzhou, SK Hynix has a DRAM chip factory in Wuxi, a NAND flash memory chip factory in Dalian, and a packaging factory in Chongqing. Taiwanese companies also have multiple factories in mainland China.


At present, it is unclear about the criteria that the US government will set for foreign chip manufacturers, but insiders said that the content of the assessment includes the possible restrictions on the types of chip equipment, that is, only equipment of certain specifications or above can be exported to Chinese Mainland, and the upper limit on the technical level of chips that manufacturers can produce in Chinese Mainland. The United States may also require South Korean chip manufacturers to draw up measures to prevent the flow of advanced chip technology to Chinese Mainland. '


A South Korean chip industry insider said that if the United States and South Korea set long-term licensing standards, Samsung Electronics and SK Hynix would be able to breathe a great sigh of relief. An official from the South Korean Industry Sales and Resources Department revealed, "We are consulting in the United States, but I am unable to confirm anything." Basically, we hope to find an uncertain method to ensure that South Korean companies operate in China without interference, and the US authorities are fully aware of our needs. Samsung Electronics and SK Hynix have stated that they have not yet received notification from the US and South Korean governments of new regulations for foreign chip manufacturers


The United States announced its comprehensive chip export control regulations on Chinese Mainland last October, and granted Samsung Electronics, SK Hynix and TSMC a one-year exemption period, allowing them to continue upgrading their factory facilities in Chinese Mainland. However, Korean factories have suspended new investment in mainland China since then, waiting for the United States to take the next step after the one-year exemption period.


South Korea's Minister of Industry, Commerce, and Resources, Lee Chang yang, was asked on the 9th about the fate of the Korean factory after the one-year exemption period expired. He stated that he expected a "significant extension" and is currently in ongoing negotiations with the United States on this matter.


When South Korean President Yin Xiyue visited the United States last month, Li Changyang and U.S. Commerce Secretary Raymond also issued a joint statement, indicating that the U.S. export control on Chinese Mainland will maintain the sustainability of the semiconductor industry, upgrade technology, and reduce interference with the global chip supply chain. At that time, Samsung Electronics also reportedly contacted the United States Department of Commerce to discuss relevant issues.


*Disclaimer: The article is sourced from the internet. If there is any dispute, please contact customer service


Recommended Posts

  • TOP