Newsletter

US Controls Semiconductor Equipment Exports to China

◀ anchor ▶

The United States has announced export control measures in the semiconductor sector as well as electric vehicle batteries.

As a matter of fact, it is committed to a stalemate of Chinese technology, and while Korean companies with semiconductor factories in China have avoided immediate damage, long-term damage seems inevitable.

Correspondent Wang Jong-myung from Washington.

◀ Report ▶

There are two main export controls in the semiconductor sector issued by the US Department of Commerce.

First, a separate license was required for US companies to sell semiconductor manufacturing equipment to Chinese companies producing semiconductors above a certain level.

However, we decided to apply the ‘presumption of rejection principle’ based on the premise of disapproval in this license review, effectively blocking all exports to Chinese companies.

However, foreign companies operating semiconductor factories in China, such as South Korea’s Samsung and SK, are allowed to export through individual screening.

While it won’t immediately block the export of US-made equipment to these companies, it says it will be approved in the future after a one-by-one review.

The Ministry of Commerce also made it necessary to obtain permission to export high-performance artificial intelligence semiconductors and some semiconductor chips used in supercomputers to China.

In particular, even if it was made in a country other than the United States, such as Korea, it was subject to control if it used equipment or technology made in the United States.

The Biden administration has long anticipated this export control, stressing that advanced semiconductor technology is essential not only for industry but also for protecting national security.

China is effectively stealing US semiconductor technology.

[제이크 설리번/미국 백악관 국가안보보좌관]

“It’s about protecting America’s technological advantage and preventing competitors from stealing American intellectual property and using American technology against us or our allies.”

Our company managed to avoid an immediate hit.

However, if the US tightens export controls, the question of whether to continue operating factories in China will inevitably deepen.

This is Jongmyung Wang from MBC News from Washington.

MBC News awaits your report 24 hours a day.

▷ Telephone 02-784-4000
▷ Email mbcjebo@mbc.co.kr
▷ KakaoTalk Report @mbc