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US Lifts Hurdles on South Korean Chip Manufacturing in China

semiconductor manufacturing

The U.S. Department of Commerce announced on Friday that the Bureau of Industry and Security is updating the authorizations of South Korean chip manufacturers Samsung and SK hynix’s factories in China under the Validated End-Users program.

The update will enable their Chinese plants to obtain chip equipment through a general authorization instead of individual export licenses, according to the VEU’s frequently asked questions portal. The bureau said the VEU authorizations allow the South Korean chipmakers to operate in China.

The new rule follows close consultations between U.S. and South Korean authorities across various channels, such as the Korea-U.S. Supply Chain and Commercial Dialogue and the SCCD Working Group on Export Controls, BIS added.

In October 2022, moved by national security concerns, the Biden administration imposed export restrictions on certain equipment and services to Chinese chipmakers to slow their advanced node semiconductor manufacturing.

According to a Forbes report, another major chipmaker, Taiwan Semiconductor Manufacturing Co., also received U.S. authorization to continue its chip manufacturing in China.

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