US Requests South Korea Again to Control Exports of Mass Semiconductors

The U.S. government reportedly demanded that South Korea implement semiconductor export control measures toward China at a level comparable to those imposed by the U.S., Bloomberg reported on the 2nd (local time).

Bloomberg cited sources saying that the South Korean and U.S. governments held in-depth discussions on this matter last month. The two countries also consulted on semiconductor export control measures toward China in February.

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Bloomberg reported that the U.S. government wants South Korea to adopt semiconductor export control measures similar to those announced by the U.S. Department of Commerce in 2022.

In October 2022, the U.S. announced export control measures to block China’s advanced semiconductor manufacturing, prohibiting the sale of equipment and technology to Chinese companies capable of producing ▲logic chips using FinFET technology (16nm to 14nm or below) ▲DRAM below 18nm ▲NAND flash with 128 layers or more.

The U.S. request is effectively interpreted as a demand to ban exports of advanced semiconductor equipment and technology to China. According to a report by the Korea Institute for International Economic Policy, South Korea holds the number one market share for memory chips in China and ranks second in silicon wafer supply after Japan.

The two countries have yet to reach a conclusion. The South Korean government is currently reviewing the matter.

The U.S. government is reportedly hoping to reach an agreement with South Korea on this issue before the upcoming Group of Seven (G7) summit in June. However, from South Korea’s perspective, since China is a key trading partner, it is difficult to fully implement semiconductor export controls. Additionally, South Korean government officials are concerned that semiconductor export controls could disadvantage Korean companies operating in China, such as Samsung Electronics and SK Hynix.

Bloomberg stated that officials from South Korea, the U.S., and Japan plan to meet at the end of June to discuss advanced technology and supply chain cooperation, and the timing of an agreement could be delayed until then.

The U.S. is increasingly tightening semiconductor sanctions against China to regain technological supremacy and contain China.

Ellen Estevez, Deputy Assistant Secretary for Industry and Security at the U.S. Department of Commerce, announced on the 27th of last month that the U.S. requested allies such as the Netherlands and Japan not to provide maintenance and repair services for semiconductor equipment sold to China. Furthermore, in January, she stated that discussions are underway to establish a new multilateral export control system with allies possessing relevant technologies, including South Korea, to prevent advanced technologies such as semiconductors from falling into the hands of adversaries.

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