U.S. to tighten export restrictions on semiconductor equipment to China...Samsung Electronics' Impact Prospects"

As the U.S. government tightened restrictions on exports of semiconductor manufacturing equipment to China, foreign media reported that equipment manufactured in other countries, including South Korea, will also be included in the measure.

However, we have decided to make exceptions for Japanese and Dutch products.

Reuters reported on the 2nd local time that the U.S. government will announce new export restrictions on 140 Chinese companies on the same day.

As a result, exports of equipment to Chinese companies such as chip manufacturing equipment companies will be restricted, Reuters said.

The new Chinese companies subject to export restrictions included more than 20 semiconductor companies, 100 semiconductor equipment companies, and two investment companies.

For American companies to export to these companies, they must first obtain special permission from the U.S. government.

The export ban to China also included high-bandwidth memory (HBM) chips, which are essential for advanced applications such as AI training.

Reuters said the clause applies to "HBM2" and higher products made by South Korea's Samsung Electronics, SK Hynix and U.S. Micron, and industry sources expect only Samsung to be affected by the move.

Twenty-four semiconductor manufacturing equipment and three software tools were also among the new banned items, most notably that many goods manufactured in U.S. allies were also added to the list subject to compliance with the export restrictions.

Reuters cited Lam Research in the United States, KLA, Applied Materials and ASM International in the Netherlands as among the players to be hit.

According to the Foreign Direct Product Rules (FDPR), the U.S. is implementing regulations that prohibit U.S.-made software, equipment, and technology from being exported to certain countries even if they are made in other countries other than the U.S.

The move also prevents U.S., Japanese and Dutch manufacturers from sending equipment for semiconductor manufacturing from other countries to factories subject to sanctions in China.

Malaysia, Singapore, Israel, Taiwan, and South Korea were subject to this policy.

However, the Netherlands and Japan were recognized as exceptions, Reuters reported.

Under the new rules, certain types of foreign goods are subject to export controls by U.S. authorities if any U.S. technology is used.

As a result, the U.S. government's logic is that the U.S. government has legal authority to regulate items exported from third countries to China if they contain even a single U.S. chip.

The move was prepared and disclosed by the U.S. government after close long-term consultations with Japan and the Netherlands.

The U.S. plans to grant exceptions to countries with similar export controls, sources explained to Reuters.

The export restrictions are the third major export restrictions to be implemented under the Biden administration.

President-elect Donald Trump will replace Biden as president on January 20 next year, but he is expected to maintain this policy stance, Reuters said.