Samsung, SK Hynix and other South Korean chipmakers ask for "indefinite exemption" from US export controls to China
International Electronics Business News 20, Korean media sources said, including Samsung Electronics, SK Hynix, including South Korean chip makers have asked the U.S. government to consider "indefinite exemption" from export controls to China, in order to facilitate their business in China. South Korea's semiconductor industry hopes that the United States can indefinitely exempt export controls, or at least give a longer grace period.
The Korea Herald on Monday quoted sources as saying that South Korean chipmakers including Samsung Electronics and SK Hynix have submitted verified end-user authorisation requests to the US Department of Commerce to facilitate the export of US-made equipment for their production sites in China.
The procedure is designed to ease the licensing burden on the industry by allowing US exporters to ship specified items to pre-approved entities under general authorisation, rather than multiple individual export licences, the report said. In simple terms, if approval is successfully obtained from the US Department of Commerce, South Korean chip makers will not need to seek duplicate authorisation to continue exporting chip manufacturing tools to China.
Last October, the US government imposed a series of trade restrictions on China and set up a one-year export exemption for chipmakers. Since then, US and South Korean officials have held intensive talks on how and under what conditions chipmakers can continue to do business in China. South Korean chipmakers are hoping that the US will exempt them from export controls indefinitely, or at least grant a longer grace period.
As the exemption period approaches, news of an extension of the exemption is also leaking out and has been confirmed by South Korean officials.
On May 9, South Korean Trade Minister Lee Chang-yan said the one-year waiver, which was due to expire in October this year, was expected to be extended for "quite a long time". Reports at the time suggested that the US move would remove a major source of uncertainty for South Korean chipmakers concerned about the future of their largest overseas manufacturing base.
The report noted that before the United States strengthened export controls, Samsung Electronics, SK Hynix, two Korean chip makers have been on the list of verified end-user authorizations. It should be noted that even if they are on the end-user authorisation list, South Korean chipmakers will not be able to import the extreme ultraviolet (EUV) machines needed to produce the world's most advanced memory chips.
Industry observers say the US could make a decision on the matter soon, as US semiconductor equipment makers need to plan their equipment production at the Chinese plants of big customers such as Korean chipmakers.
The Korea Herald on Monday quoted sources as saying that South Korean chipmakers including Samsung Electronics and SK Hynix have submitted verified end-user authorisation requests to the US Department of Commerce to facilitate the export of US-made equipment for their production sites in China.
The procedure is designed to ease the licensing burden on the industry by allowing US exporters to ship specified items to pre-approved entities under general authorisation, rather than multiple individual export licences, the report said. In simple terms, if approval is successfully obtained from the US Department of Commerce, South Korean chip makers will not need to seek duplicate authorisation to continue exporting chip manufacturing tools to China.
Last October, the US government imposed a series of trade restrictions on China and set up a one-year export exemption for chipmakers. Since then, US and South Korean officials have held intensive talks on how and under what conditions chipmakers can continue to do business in China. South Korean chipmakers are hoping that the US will exempt them from export controls indefinitely, or at least grant a longer grace period.
As the exemption period approaches, news of an extension of the exemption is also leaking out and has been confirmed by South Korean officials.
On May 9, South Korean Trade Minister Lee Chang-yan said the one-year waiver, which was due to expire in October this year, was expected to be extended for "quite a long time". Reports at the time suggested that the US move would remove a major source of uncertainty for South Korean chipmakers concerned about the future of their largest overseas manufacturing base.
The report noted that before the United States strengthened export controls, Samsung Electronics, SK Hynix, two Korean chip makers have been on the list of verified end-user authorizations. It should be noted that even if they are on the end-user authorisation list, South Korean chipmakers will not be able to import the extreme ultraviolet (EUV) machines needed to produce the world's most advanced memory chips.
Industry observers say the US could make a decision on the matter soon, as US semiconductor equipment makers need to plan their equipment production at the Chinese plants of big customers such as Korean chipmakers.
