As early as 7th, the U.S. government will announce new export controls that make it difficult for China to obtain the equipment it needs to produce advanced semiconductors.
Although the measure is aimed at China’s semiconductor industry, it is expected that it will inevitably affect domestic companies such as Samsung Electronics and SK Hynix, which operate factories in China.
The telecoms said that exports to foreign companies that produce memory semiconductors in China will undergo a separate examination on a case-by-case basis, and this is highly likely to be approved.
An official said, “The purpose of this regulation is not to hurt companies other than Chinese companies.”
The new sanctions require U.S. companies that want to sell cutting-edge technology to Chinese companies that produce 18nm or less (nanometer, 1 billionth of a meter) DRAM, 128-layer or higher NAND flash, and 14nm or less logic chips to obtain a separate license. known to be
However, the permit standards are practically impossible to meet, Reuters reported.
Foreign companies that make the same semiconductors in China must also obtain separate approval to purchase US-made equipment, but they will be reviewed on a case-by-case basis.
Telecommunication analyzed that foreign companies such as Samsung Electronics and SK Hynix are free from the direct impact of this measure, which is aimed at Chinese companies first, but it is expected to have a direct or indirect impact on the domestic industry as the new stricter screening standards are applied.
Samsung Electronics and SK Hynix are expected to have no problems maintaining production at the current level, but if they plan to expand their production capacity or produce more advanced semiconductors in the future, they will have to obtain US permits to import necessary equipment from their Chinese factories. Because.
According to a diplomatic source, the US informed the South Korean government of the details in advance and went through several discussions before finalizing the measures.
The government plans to discuss licensing procedures with the U.S. government in the future so that there is no setback in the operation of Samsung Electronics and SK Hynix factories in China.
The US government is of the view that the measure is aimed at freezing China’s semiconductor technology to the current level.
Therefore, there is an analysis that the long-term profit for Korean companies may be greater in that the US will check the technology acquisition of China, which has narrowed the gap with Korea at a frightening speed.
President Joe Biden has been emphasizing economic security, such as strengthening checks against China, protecting cutting-edge technologies in key industries such as semiconductors, and rebuilding American industries right after taking office.
In the aftermath of the novel coronavirus infection (COVID-19), global supply chain disruptions have continued, adding more weight to economic security.
The US also included a so-called ‘guard rail’ clause that prohibits investment in high-tech facilities in Chinese factories for 10 years if it receives US government subsidies while processing the semiconductor law.