US reviews extension of semiconductor restriction

The U.S. Commerce Secretary Gina Raimondo, when asked whether the decision has been made regarding waiver extension on chipmaking export into factories of Samsung Electronics and SK hynix in China, said on Sunday that “still doing the work (review) " adding, "No one ever said we want to decouple from China."

In an interview with CNN on the day, Secretary Raimondo remarked concerning the import regulations on semiconductor equipment for China, "I am not going to preview any decision that we may or will make in a month or so.” "What we (the government) are going to do, and what we are not going to compromise on, is preventing sales of our most sophisticated and most powerful semiconductors to China, which China wants for its military," Secretary Raimondo said. "We want to have a narrow line around what is national security. We are never going to sell China our most sophisticated and advanced AI chips, which they want for their military. But of course, we will continue to do business with them as it relates to less sophisticated, more commodity such as chips.”

Such remarks seem to signal a recognition of the need to prolong the waiver of existing export regulations. Last October, the U.S. Department of Commerce implemented stringent controls on importing high-end DRAM and NAND flash semiconductor apparatus into China, albeit with a one-year regulatory respite extended to industry giants like Samsung Electronics and SK hynix. Current reports indicate that the Department is contemplating a strategy to prolong this waiver, albeit with restrictions on the technological caliber of semiconductor equipment allowed into the Chinese facilities of Samsung Electronics and SK hynix, without delineating a specific conclusion date for the extended grace period.


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