The US is considering an indefinite postponement of equipment import regulations… Expected to be notified early next month
The U.S. government has decided to indefinitely suspend regulations on the import of semiconductor equipment to Samsung Electronics and SK Hynix’s Chinese factories. It appears that much of the uncertainty surrounding whether the domestic semiconductor industry will continue its business in China will be resolved.
According to the industry on the 27th, the U.S. government reportedly decided to suspend export control measures for Samsung Electronics and SK Hynix’s Chinese factories indefinitely.
It is highly likely that this measure will be approved through the ‘verified end user (VEU) method’ desired by Samsung Electronics and SK Hynix. VEU refers to a type of comprehensive licensing method that allows only companies that have been approved in advance to export designated items. This means that there is no need to obtain separate approval from the U.S. Department of Commerce when bringing in equipment.
As a result, Samsung Electronics and SK Hynix will be able to operate their factories in China. Currently, Samsung Electronics manufactures 40% of its total NAND flash production at its plant in Xi’an, China. SK Hynix makes 20% NAND and 40% DRAM at its Dalian and Wuxi factories, respectively.
Previously, U.S. Deputy Secretary of Commerce Don Graves, during his visit to Korea on the 21st, said regarding the ban on the import of cutting-edge semiconductor equipment into China, “I want to make it clear that Korean semiconductor companies will be allowed to continue their legitimate business in China.”
The U.S. government introduced export restrictions on cutting-edge semiconductor equipment to China in October last year. The main content is a ban on exporting cutting-edge technology or manufacturing equipment or sending personnel to China.
The U.S. government’s ban on exports of semiconductor equipment to China against Samsung Electronics and SK Hynix is currently being temporarily suspended, and the one-year suspension will end on the 11th of next month.
The timing of notification to the two companies is expected to be as early as this week or early next month at the latest. However, if a temporary business suspension (shutdown) of the federal government occurs due to the failure of the U.S. Congress to process the budget bill, the timing of notification may also be affected.
2023-09-27 11:44:00
#Samsung #Chinese #semiconductor #factories #breathtaking
