United States to revoke export privileges for Samsung, SK hynix in China

SEOUL: South Korean chipmakers are facing growing concerns as the U.S. administration plans to introduce a stricter export control mechanism for Samsung Electronics and SK hynix, in addition to its hefty tariff scheme, according to industry watchers on Saturday.

On Friday (US time), the U.S. Commerce Department announced a plan to strip the two Korean chipmakers, as well as Intel Semiconductor Ltd., of "validated end-user (VEU)" status, a move that will require them to secure individual export licenses for sending certain U.S. chipmaking equipment to their plants in China.

Until now, Samsung Electronics and SK hynix could ship certain U.S. semiconductor equipment to pre-approved sites under a general authorization with their VEU status, reports Yonhap news agency.

"We have been able to reduce business uncertainties even amid Washington's export controls on China thanks to the VEU status, but with the planned revocation of the status, we will have to face short-term damage," an industry official said on condition of anonymity.

"The U.S. administration has been rolling out new or revised semiconductor regulations every two to three weeks and also revising existing ones," the official said.

"But since Washington has a clear direction of fostering the American semiconductor industry, we are reviewing various scenarios and working on mid- to long-term countermeasures," the official added. (IANS)

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