Samsung and SK, set aside an hour... U.S. suspends export controls on semiconductor equipment to two locations for one year

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It was confirmed that the US government, which recently banned US companies from exporting semiconductor equipment to China, allowed Samsung Electronics and SK Hynix's Chinese factories to import equipment without applying for a license to the US government for one year.

Accordingly, both companies will be able to receive equipment without any additional procedures for the next one year, so there will be no disruption to production in China.

According to multiple domestic and foreign sources on the 11th (local time), the U.S. Department of Commerce recently officially notified Samsung Electronics and SK Hynix of this policy.

Earlier, the Ministry of Commerce announced on the 7th a new export control measure that effectively bans US companies from exporting semiconductor equipment to Chinese semiconductor producers in an attempt to prevent China from acquiring semiconductor technology.

Specifically, U.S. companies will produce semiconductors with a higher level of technology than logic chips (16nm to 14nm) that use ▲18nm (nanometer, 1 billionth of a meter) or less DRAM ▲128-layer or more NAND flash ▲FinFET technology. It includes the requirement to obtain a separate license for selling capable equipment and technology to China.

In particular, if production facilities in China are owned by Chinese companies, the so-called 'presumption of rejection principle' is applied and exports are virtually banned entirely.

Instead, in the case of production facilities owned by foreign companies, we decided to make a decision on an individual basis.

This policy goes one step further from the principle of case-by-case permit for foreign companies in China, allowing Samsung and SK hynix's Chinese factories to import equipment without obtaining a case-by-case permit for one year.

In fact, the export control measures were deferred for one year, which is interpreted as a measure in consideration of the position of Korean companies.

Currently, it is known that Samsung and SK are upgrading their factories in China and have to import several equipment.

Since there is a lot of equipment, the process is complicated and it takes a long time to approve each case. With this measure, the necessary equipment import was granted comprehensively at once.

Accordingly, it is evaluated that uncertainties such as delays in procedures due to individual examinations have been resolved.

SK hynix said, "We have reached an amicable agreement with the United States so that we can continue to produce semiconductor products in China." will," he said.

However, the measure appears to be limited to factory upgrades and it is unclear whether it will continue to apply after a year.

It is known that the U.S. government is in a position to continue discussing with the Korean side on the level to which equipment imports will be allowed in relation to future projects, not the ones currently in progress.

A source said, "It doesn't mean that the US grants permission indefinitely, but it seems that Samsung and SK gave permission for a specific period so that they do not have to apply for each case while upgrading their factories in China."

Another source said, "We understand that this action is a comprehensive approval of Samsung and SK's specific projects by the US government."

The US government shared details with South Korea in the process of preparing export control measures, and the Korean government closely consulted with the US side to ensure that Samsung and SK's operations in China are not disrupted.

In particular, it is said that they requested that there be no issues with the upgrade currently in progress.

During the consultation process, the U.S. government is known to have informed the Korean government that it "will not cause any disruption to the semiconductor production of multinational companies."

From the U.S. point of view, cooperation from South Korea, a semiconductor powerhouse, is required for export controls to be effective.

Reuters reported on the same day that the U.S. government has allowed at least two non-Chinese semiconductor companies to receive export-controlled products and services without having to apply for a license.

(Photo=U.S. President's official Twitter, Yonhap News)