US & china are allies and enemies at the same time

U.S. Set to Indefinitely Suspend Equipment Restrictions for Samsung and SK Hynix in China

This blog post covers the imminent announcement of the U.S. government indefinitely suspending restrictions on semiconductor equipment imports to Samsung Electronics and SK Hynix's Chinese factories, showcasing a significant shift in export control policies and its potential impact on the semiconductor industry.
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Introduction:

In a significant development, the U.S. government is poised to announce the indefinite suspension of restrictions on the import of U.S.-made semiconductor equipment to Samsung Electronics and SK Hynix’s Chinese factories. This move comes ahead of the expiration of the U.S. public (China) semiconductor equipment export control deferred action for these companies, expected on the 11th of the following month. The Ministry of Commerce is anticipated to soon notify the companies, employing an updated ‘verified end-users’ (VEU) list—a comprehensive licensing scheme allowing designated item exports to predetermined companies without the need for separate licensing.

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Indefinite Grace of Export Controls:


Anticipating an indefinite grace period for export controls, experts foresee a potential solution to the business uncertainty faced by Korean companies operating in China. An updated VEU list will be the driving force behind this resolution, enabling a greater level of equipment entry into China than currently authorized by U.S. export controls for the country. The VEU list will encompass not only current semiconductor production equipment but also items reflecting future business plans.

U.S. Deputy Commerce Deputy Minister Don Graves has emphasized the importance of enabling Korean semiconductor companies to continue their legitimate business operations in China. The Ministry of Commerce has reportedly concluded discussions, and we anticipate a formal decision soon.. The Commerce Department will notify businesses and subsequently publish the decision in the Federal Register.

Potential Timing and Implications:


The exact timing of the announcement, though highly likely this week, still awaits confirmation. Nonetheless, a delay in notifying companies, should it coincide with a potential federal government shutdown due to Congress’s budget handling, could carry implications. However, if there’s a delay in notifying companies and it aligns with a possible federal government shutdown caused by Congress’s budget handling, it could lead to implications. Nonetheless, experts suggest that the deferred arms notice, or the federal affairs’ potential temporary suspension is unlikely to significantly impact the overall situation.

Why Silicon Wafers Are Round and Chips are Square? – techovedas

Background on Export Control Measures:


The Commerce Department had previously imposed export controls on semiconductor equipment to Chinese semiconductor producers, effective from October 7 last year. This control prohibited U.S. companies from exporting specific semiconductor equipment to Chinese counterparts, including logic chips using FinFET technology, DRAM below 18nm, and equipment capable of producing NAND flash of 128-stage or more.

Conclusion:


The anticipated indefinite suspension of restrictions on semiconductor equipment imports for Samsung Electronics and SK Hynix in China signifies a crucial shift in U.S. export control policies. Korean companies operating in China eagerly await the outcome of this decision, as it has the potential to alleviate business uncertainties and drive technological advancements in the semiconductor industry. Furthermore, this development could have far-reaching implications for the global semiconductor market.

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