The United States has made it very difficult for chip companies to export products manufactured with US technology to China. This is a result of the sanctions that the US has imposed on China. However, the country did grant exemptions to certain chip manufacturers in South Korea, including Samsung Electronics.
South Korean semiconductor companies, including Samsung Electronics, have now requested that the US government provide an “indefinite exemption” on export controls to China. This would help reduce some of the pressure that these companies are facing amid the tensions between the US and China.
Samsung seeks critical exemption from the US
This indefinite exemption will enable them to keep exporting US-manufactured equipment to their factories in China. This step would also go a long way in reducing the licensing burden since US exports will be able to ship allowed items to approved entities under a general authorization, instead of having to see multiple individual export licenses.
When the chip-related sanctions were imposed on China last year, the US Commerce Department did offer a one-year waiver to Samsung Electronics, allowing it to export US equipment to its Chinese factories. Samsung operates chip plants in the Chinese city of Xian where 40% of its total NAND chips are produced. A semiconductor packaging factory is also run by the company in Suzhou.
While Samsung hasn’t publicly commented on the matter as yet, local media reports suggest that it’s been making efforts to either receive an exemption or a longer grace period from US export controls. The US is expected to make a decision on the matter soon.
