United States Calls on South Korea to Strengthen Restrictions on Chip Exports to China

The United States is putting pressure on South Korea to tighten export restrictions on advanced semiconductor technology and tools used in the production of high-end logic and memory chips heading to China. This move comes amid concerns for national security, with the U.S. requesting similar controls to impede China's semiconductor industry progress. The U.S. is specifically looking for South Korea to consider restrictions on logic chips more advanced than 14-nanometer and a type of memory known as DRAM beyond 18nm, aligning with measures put in place by the U.S. Department of Commerce in 2022.

Discussions between U.S. officials and South Korean President Yoon Suk Yeol's government have taken place, with a goal to reach an agreement before the G7 summit in mid-June.However, South Korea is hesitant to comply due to economic ties with China. The U.S.has also been urging other allies like the Netherlands, Germany, Japan, and South Korea to tighten their own export controls on semiconductor equipment and chip chemicals sent to China. Despite these pressures, a meeting is planned for late June between officials from South Korea, Japan, and the U.S. to discuss collaboration on advanced technology and supply chains. In response to these developments, the Biden administration has updated regulations to restrict China's access to U.S.

AI chips and chipmaking equipment, further hindering China's semiconductor industry advancement on national security grounds. China has criticized these restrictions, claiming they create trade barriers and chip industry instability. South Korea is cautious about potential retaliatory actions from China in response to these export controls, given the involvement of tech giants like Samsung Electronics and SK Hynix in the Chinese market.

While South Korea plays a crucial role in producing advanced logic and memory chips with support from companies like Samsung and Hynix, its chip equipment suppliers are not as prominent. SK Hynix, in partnership with Nvidia, is set to invest around $4 billion in establishing an advanced chip-packaging facility in West Lafayette, Indiana, receiving incentives and support from the U.S., according to a recent report.