US Grants 1-Year Grace Period on Semiconductor Equipment Export Ban to Samsung Electronics and SK Hynix's China Factories

Equipment Supply Allowed in Chinese Semiconductor Factories for One Year Without Separate Permission

Samsung Electronics Pyeongtaek Campus view / Provided by Samsung Electronics

[Asia Economy Reporter Kim Pyeonghwa] Samsung Electronics and SK Hynix will be able to supply related equipment to their semiconductor factories in China for one year without US regulations.

According to the semiconductor industry on the 12th, the US Department of Commerce notified a policy allowing Samsung Electronics and SK Hynix to supply equipment necessary for semiconductor production facilities in China for one year without separate approval. This goes beyond the previous individual permits, enabling the two companies to continue semiconductor production activities in China without restrictions for one year.

Earlier, on the 7th, the US Department of Commerce announced controls on exports of equipment related to DRAM of 18 nanometers (nm, one billionth of a meter) or less produced in China, NAND flash with 128 layers or more, and logic semiconductors of 14 nm or less. However, multinational companies such as Samsung Electronics and SK Hynix, which have semiconductor factories in China, were allowed to receive equipment by obtaining individual permits.

Following this measure, the domestic government, Samsung Electronics, and SK Hynix reportedly emphasized to the US side that continuous equipment supply is important, as this issue is linked not only to individual companies' semiconductor production but also to the global supply shortage. It appears that the US side proposed a one-year grace period.

An SK Hynix official said, "We have smoothly negotiated with the US to continue semiconductor product production in China," and added, "Going forward, we will continue to work closely with our government and the US Department of Commerce to operate our China factories within the scope of complying with international order."

This content was produced with the assistance of AI translation services.