'US Export Control Emergency' Semiconductor Equipment Industry, "Government Please Take Active Role"

On the 2nd (local time), following the United States' announcement of revised export control measures on advanced semiconductor equipment, the domestic semiconductor equipment industry called for a more proactive role from the government. Along with this, they expressed hopes for an expansion of tax credits for national strategic technology projects and the prompt passage of the Semiconductor Special Act currently under discussion in the National Assembly.

Regarding the U.S. announcement on the 2nd (local time) about revised export control measures on advanced semiconductor equipment, the Ministry of Trade, Industry and Energy announced on the 6th that it held a meeting in Seoul, chaired by the Director of the Advanced Industry Policy Division, with the semiconductor equipment industry to discuss future response measures.

Under this measure, the U.S. newly introduced controls on High Bandwidth Memory (HBM) and expanded its Entity List of concerning traders. Additionally, to broaden existing controls on advanced semiconductor equipment, 24 new types of semiconductor equipment and 3 related software items were newly added to the export control list. The measure also applies the Foreign Direct Product Rule (FDPR) to these HBM and semiconductor equipment export controls.

At the meeting, the industry evaluated that the uncertainty has somewhat been alleviated as the U.S. export control details were finalized and the industry's position was partially reflected during intergovernmental consultations. They requested the government’s continued attention to support policies for materials, parts, and equipment.

Participating companies at the meeting stated that expanding tax credits for national strategic technologies would aid future investments. In particular, they assessed that the Trinity Fab, in which the government is investing large-scale resources, would be a groundbreaking opportunity for materials, parts, and equipment companies to expand their business areas.

However, the industry anticipated possible policy changes following the inauguration of the new U.S. administration and requested the government to strive to protect industry interests and reduce uncertainty concerns. They also asked for efforts to promptly legislate the Semiconductor Special Act currently under discussion in the National Assembly to enhance the autonomy of working conditions for semiconductor research personnel.

The Ministry of Trade, Industry and Energy stated that it will continuously monitor the impact of the U.S. export control measures and actively support resolving difficulties and strengthening competitiveness in the semiconductor materials, parts, and equipment industry.

Companies attending the meeting from the semiconductor industry included Wonik IPS, Jusung Engineering, TES, SEMES, PSK, VM, Oros Technology, and Surplus Global.