Samsung and SK Hynix at intersection instead of temporary up on export controls

Reportedly, it has been found that the United States has preparing to extend the grace period for Korean companies. This is to export semiconductor equipment to China. These results frequently raise concerns for domestic companies including Samsung Electronics, and SK Hynix. Since these are the companies that seamlessly produce semiconductors in their Chinese factories. At the same time, if companies apply for subsidies in order to build semiconductor factories in the U.S. This probably result in limiting their advanced semiconductor production in China. And, this substantially hampers the bolsters of the global competitiveness of Korea’s semiconductor industry.

As per the foreign media and industry sources recently, including the Wall Street Journal, Alan Estevez, deputy secretary for industrial security at the Department of Commerce. Since they disclosed last week at a meeting with officials from the Semiconductor Industry Association that the grace period for export controls on semiconductor equipment for Korean and Taiwanese companies will be stretched for the time being.

The Biden administration will subsequently decree U.S. government approval when selling Chinese companies equipment and technology. Those who are capable of developing logic chips. Including FinFET technology 16 nm or smaller, DRAM 18 nm or smaller, and NAND flash with 128 layers. Also, they impose a year period that tends to expire in October but the same has been extended.

One semiconductor industry official said, “They’re not immediately blocking the production of advanced semiconductor chips in China, so we’re avoiding devastating profit losses. However, there’s still a lot of uncertainty.”

In spite of the extension of the grace period, the timeline has not been decided yet is become the cause for anxiety. Therefore, it remains unpredictable when and how Korean companies will the going to face the risk with respect to export controls due to the instant sharpening of U.S-China conflicts.

The continued increase in high pressure from American politicians on domestic companies is also a cause. Additionally, Republican Senator Marco Rubio sent a letter to Commerce Secretary Gina Raimondo last month persuading her to strengthen the regulations on exports to China. He criticized, “Companies like Samsung, a semiconductor manufacturer from Korea, lobbied to be able to operate normally in Chinese production facilities and got a one-year exemption from export controls.”

Samsung Electronics, SK Hynix

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