The U.S. is poised to indefinitely lift export restrictions on exports of semiconductor equipment to Samsung Electronics and SK hynix's China facilities.
Business Korea reports the. Commerce Department’s Bureau of Industry and Security (BIS) has nearly concluded discussions with these companies regarding the specifics of the equipment they can export to China. The expected halt in U.S. oversight will likely be an update to the Verified End Users (VEUs) list, allowing pre-approved entities to export specified items without additional licenses.
During a September 21 visit to Korea, U.S. Commerce Secretary Don Graves emphasized the U.S.' commitment to ensuring Korean semiconductor companies can continue operations in China.
“We want to make it clear that we will allow Korean semiconductor companies to continue their lawful business in China,” Mr. Graves told reporters, “We will do everything we can to make sure the Korean semiconductor companies will be able to continue their business.”
Industry Minister Bang Moon-kyu met with U.S. Deputy Secretary of Commerce Don Graves in Seoul ahead of the expiry next month of a year-long waiver for Samsung Electronics and SK Hynix to import U.S. chip-making equipment into China.
The U.S. has not announced how or whether the waiver may be extended when it expires in October, or any conditions which would further affect the firms' production plans in China.
Bang has sought “active cooperation” from the U.S. Department of Commerce to resolve issues relating to export controls, South Korea's Ministry of Trade, Industry and Energy said in a statement without elaborating.
Samsung Electronics has NAND flash memory production in Xian, China whereas SK Hynix has DRAM chip production in Wuxi and NAND Flash production in Dalian. The companies together control nearly 70% of global DRAM and 50% of NAND flash markets as at June-end, showed data from TrendForce.
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