On Tuesday, South Korea’s Trade Minister Ahn Duk-geun expressed his approval of the U.S. government’s new regulations regarding the general authorizations for Samsung Electronics and SK hynix to keep providing their Chinese-based plants with certain U.S. semiconductor manufacturing equipment.
The U.S. government gave the two companies a verified end user (VEU) designation, which will allow them to get a general authorization instead of individual licenses.
The two companies had previously received a one-year waiver from the U.S. rule restricting the export of certain advanced chipmaking tools to China-based facilities, which was set to expire this month.
“The designation of Samsung and SK hynix’s Chinese plants as VEUs has significantly eased uncertainties for South Korean firms,” Ahn stated to reporters.
Trade Minister Ahn Duk-geun speaks during a meeting held in Seoul on Oct. 14, 2023. (Yonhap)
The trade ministry also noted that it is actively participating in talks with the U.S. government on the CHIPS and Science Act.
“We plan to discuss closely with companies the related trends, and continue cooperation with the U.S. government to enhance the global chips supply chain and guarantee companies’ investment and operations,” the minister said.
Regarding the Hamas militant group’s recent attack on Israel, Ahn said the issue is not currently having an effect on the country’s exports, although the government is keeping an eye out for any potential volatility in the energy sector.
“If Iran gets involved in the conflict, or if there are issues at the Suez Canal, there could be some serious issues,” Ahn said.
South Korea’s exports decreased for the 12th consecutive month in September, but the decline was the smallest so far this year, indicating a recovery.
colin@yna.co.kr
(END)