"US Extends Waiver on Semiconductor Equipment Export Restrictions to China for Korean Companies"

No Individual Review for Exports to China for One Year
Extension Period Undecided but Indefinite Option Also Considered

The U.S. government plans to extend the one-year grace period for export restrictions on semiconductor manufacturing equipment to South Korean and Taiwanese companies, the Japanese Nikkei newspaper reported on the 23rd. Previously, the U.S. government allowed Samsung Electronics, SK Hynix, and Taiwan's TSMC to send U.S.-made semiconductor equipment necessary for operating their factories in China for one year without individual review.

Nikkei, citing multiple industry sources, reported that the U.S. government has decided to extend the grace period, which is set to expire in October. Relatedly, Alan Estevez, U.S. Deputy Secretary of Commerce, hinted at the extension during a meeting with the semiconductor industry in June. Although the extension period is undecided, the newspaper introduced the possibility of making it indefinite.

The U.S. government has effectively imposed a near-total ban on exports of equipment needed for semiconductor manufacturing to China, but foreign companies with semiconductor production bases in China will be subject to individual reviews for approval.

Following the policy of maintaining the grace period, South Korean and Taiwanese companies will be able to continue bringing U.S.-made semiconductor manufacturing equipment into their existing factories in China and continue production. The newspaper analyzed that this policy is because the U.S. government expects that causing disruption to the global supply chain would not be beneficial ahead of next year's U.S. presidential election.

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