US Considers Separate Standards for Semiconductor Equipment Import by Korean Companies

The U.S. government, which has controlled the export of advanced semiconductor production equipment to China, is reportedly considering separate equipment import standards for Korean companies operating production activities in China.

According to Yonhap News Agency, citing multiple sources, the U.S. Department of Commerce is maintaining semiconductor technology controls against China while consulting with the Korean government and others to increase predictability for Korean and Taiwanese companies and minimize supply chain disruptions, the agency reported on the 10th.

SK Hynix factory in Wuxi, China [Image source=SK Hynix Newsroom]

The one-year grace period for U.S. export controls on semiconductor equipment to Samsung Electronics and SK Hynix in China will end this October. If separate standards are established, Korean companies could continue to benefit from a temporary one-year export control exemption as currently applied. Additionally, there is the advantage of being able to import U.S. semiconductor equipment into China within the standards without time limits, thereby enhancing the performance of production facilities in China.

A source said, "The one-year export control exemption for Korean companies by the U.S. is a temporary measure," adding, "(It) was a permission granted for a set period while Samsung and SK upgraded their local factories."

The source continued, "If a system that can be operated systematically is created in the future, Korean companies will be able to continue producing semiconductors in China within that framework," and "It will not be a time-limited temporary method but rather a relatively long-term operation."

It is not yet known in what specific form the Department of Commerce will establish semiconductor equipment import standards for foreign companies such as those from Korea. However, possibilities include excluding semiconductor equipment above certain specifications from the list of allowed imports or setting separate limits based on semiconductor technology levels.

Earlier, in October last year, the U.S. Department of Commerce announced measures to control exports of equipment by U.S. companies to semiconductor manufacturers in China for security reasons. Under these measures, Samsung Electronics and SK Hynix had to obtain U.S. government approval to send equipment for manufacturing D-RAM below 19 nanometers and NAND flash with 128 layers or more to China, but both companies were granted a one-year exemption from regulation.

Currently, Samsung Electronics operates NAND flash production and back-end process factories in Xi'an and Suzhou, respectively, in China. SK Hynix runs a D-RAM factory in Wuxi and a back-end process factory in Chongqing. It also operates a NAND factory in Dalian, acquired from Intel.

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