The US government plans to extend one-year exemptions allowing companies from South Korea and Taiwan to expand their semiconductor operations in China. These exemptions will enable them to acquire new chipmaking equipment. The move comes after the US imposed additional export restrictions in October 2022 to prevent China-based companies from acquiring advanced equipment manufactured outside the US, requiring suppliers to obtain a license from the Department of Commerce. The waivers granted to chipmakers including Samsung, SK Hynix, and Taiwan Semiconductor Manufacturing Company are set to expire in October, creating uncertainty about their long-term investments in China.

South Korean chipmakers were expected to fill the gap left by China’s directive to domestic critical information infrastructure operators to cease purchasing chips from Micron Technology. This extension of chip exports to China indicates that South Korean companies are pushing back against US efforts to restrict their access to advanced technology. The South Korean government has been urging the US to reconsider its export controls and maintain the current level of investment in China.

Industry analysts suggest that the extension of waivers provides chipmakers with confidence to expand their operations in China without fear of repercussions from the US in the near future.

Thanks to Mobile World Live, for providing this article for us to review,

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