US to indefinitely extend China waiver for South Korean chip makers: Yonhap

The US commerce department will reportedly allow Samsung and SK Hynix to keep sending certain US chip-making tools to China

Washington will make related announcements as early as this week, according to the Yonhap report citing unnamed sources

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A South Korean national flag and a Samsung flag flutter outside the company’s building in Seoul. Photo: AFP

Published: 3:24pm, 27 Sep 2023

The US is expected to indefinitely extend a waiver granted to South Korean chip makers Samsung Electronics and SK Hynix on needing licences to bring US chip equipment into China, Yonhap news agency reported on Wednesday.

The US Commerce Department has discussed details with the South Korean chip makers on which equipment could be used in China, said Yonhap, citing unnamed sources, adding that the US would make related announcements as early as this week.

Last year, the chip makers had received authorisation from the US Commerce Department to supply equipment needed for chip production in China for a year without seeking additional licences.

The US Department of Commerce will update its “validated end user” list, denoting what entities can receive exports of which technology, to allow Samsung and SK Hynix to keep receiving certain US chip-making tools.

Once included in the list, there is no need to obtain permission for separate export cases.