SEOUL, June 21 (AJP) - Samsung Electronics and SK hynix are closely monitoring developments after US officials reportedly notified the South Korean chipmakers this week about potential restrictions on American semiconductor equipment shipments to their China-based facilities, according to a report on Friday. The Wall Street Journal reported that Jeffrey Kessler, assistant secretary for export administration at the US Commerce Department, informed both companies along with Taiwan's TSMC about plans to revoke exemptions that currently allow unrestricted equipment supplies to their Chinese operations.
The proposed measures would effectively block US semiconductor equipment from companies including Applied Materials, Lam Research and KLA from entering Chinese facilities operated by foreign chipmakers. This represents the latest move by the Trump administration to curb China's semiconductor capabilities, following previous restrictions on high-bandwidth memory exports and the ongoing ban on ASML's extreme ultraviolet lithography equipment exports to China since 2019.
Industry experts suggest the impact on Korean companies may be limited, as firms have had time to prepare contingency plans since the Biden administration began implementing "de-risking" policies targeting China's presence in critical technology supply chains. An industry research specialist noted that companies have had time to develop countermeasures since equipment import restrictions for Chinese facilities have existed previously, suggesting the new limitations may not cause significant concern.
Samsung operates NAND flash production and semiconductor packaging facilities in Xi'an and Suzhou respectively, while SK hynix runs DRAM manufacturing in Wuxi, packaging operations in Chongqing, and a NAND facility in Dalian acquired from Intel. Both companies are carefully monitoring the situation as the proposed policy has not received full approval from other US government departments, according to the Wall Street Journal report.
The US government previously granted exemptions to Samsung and SK hynix when it announced semiconductor export controls in October 2022, initially providing a one-year waiver before designating both companies as "verified end users" for indefinite exemption. Industry observers suggest similar exemptions could emerge again, noting that US measures target Chinese companies rather than foreign firms operating in China, leaving room for potential policy adjustments that would spare non-Chinese manufacturers.
reporter
Candice Kim
candicekim1121@ajupress.com
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