U.S. Extends Korea-Taiwan Chip Control Exemption Period Policy Set

Release Date: 09-04, 2023


  According to the Japan Economic News reported that the U.S.government plans to extend the exemption period for South Korea and China Taiwan companies to limit the export of cutting-edge semiconductors to mainland China.It is reported that the previous one-year exemption period will expire in October this year.


  The report cited a number of industry sources,said the United States to extend the exemption period of the policy has been determined,but the specific extension of the time has not been determined,but also does not rule out the possibility of indefinite extension.


  Prior to this,in October 2022,the U.S.government for the semiconductor industry in mainland China to launch more stringent export restrictions,requiring companies to apply for a licence from the U.S.Department of Commerce,in order to be used for artificial intelligence and supercomputing(Supercomputing),advanced chips and related semiconductor equipment exported to mainland China.

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  TSMC,Samsung and SK Hynix,which have production bases in mainland China,were granted a one-year waiver after lobbying the U.S.authorities,allowing South Korean and Taiwanese companies,including TSMC,Samsung and SK Hynix,to continue to import U.S.-manufactured chip equipment into their existing factories in mainland China and continue production.


  In June this year,the U.S.Department of Commerce,Industry and Security Deputy Secretary Alan Estevez had hinted at an extension of the exemption period,plans to allow South Korea and China and Taiwan's major semiconductor manufacturers in mainland China to maintain and expand existing chip production operations.


  Earlier,in May this year,the foreign media had mentioned,the United States government has released signals to Samsung Electronics and SK Hynix,indicating that the two major South Korean memory chip companies will be allowed to enjoy at least one year's buffer for the Chinese chip factory,a move to a certain extent,eliminating the South Korean chip makers on the future of its largest overseas manufacturing base to worry about the main uncertainty.


  Kim Yang-paeng,a researcher at the Korea Institute of Industrial Economics and Trade,responded to the matter by saying,"If the exemption is not extended,it will disrupt companies'chip production in mainland China.For example,they will need to replace some parts if the chip manufacturing equipment breaks down,but if the U.S.fails to renew the exemption for the companies,it will be impossible to even repair the chip production equipment if it breaks down."