2024-08-02 04:32:51
Export restrictions to be expanded as early as this month
“The will of allies not to be hostile”
The U.S. government is expected to announce measures to expand and strengthen export regulations on semiconductor equipment to China to other countries as early as this month. However, allies such as Korea, Japan, and the Netherlands are expected to be classified as exceptions and will not be subject to the measures.
Citing an anonymous source, Reuters reported on the 31st (local time) that “the United States is set to announce a new regulation that will block other countries from exporting semiconductor equipment to China.” The regulation, currently in the draft stage, expands the Foreign Direct Product Rule (FDPR), which requires that even products made by foreign companies must obtain permission from the U.S. government if they use U.S. software, equipment, or technology. In addition, the regulation effectively prohibits the export of equipment or goods to China’s six fabs (production plants), which are key facilities for advanced semiconductor manufacturing.
However, about 30 allied countries, including Korea, the Netherlands, and Japan, will be classified as exceptions under this regulation. Reuters evaluated that “it shows the U.S.’s will not to antagonize its allies while pressuring China’s semiconductor industry.”
China immediately protested the measure. Chinese Foreign Ministry spokesperson Lin Jian said at a briefing that “suppression and suppression cannot stop China’s development,” and “we hope that relevant countries will resolutely resist (the U.S.) threats, safeguard the international trade order, and safeguard long-term interests.”
The domestic semiconductor industry responded that the immediate impact on Korea would be limited, and that the trend toward deregulation centered on allies was positive. A semiconductor company official said, “There will be no major changes since the regulations on equipment imports to Samsung Electronics and SK Hynix factories have already been extended indefinitely,” and “From a market perspective, there is room to further resolve uncertainty and seek windfall profits.”
Reporter Choi Ji-seon [email protected]
Reporter Park Hyeon-ik [email protected]
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2024-08-02 04:32:51