South Korean government agency: US expands semiconductor export controls to China to accelerate China's localization process
On November 6th, the Korea Institute for Foreign Economic Policy (KIEP) released a report titled "The Impact and Implications of Expanding US Semiconductor Export Controls", stating that expanding US semiconductor export controls to China poses a threat to Korean companies as China may strive to achieve self-sufficiency.
On October 17th, the US Department of Commerce's Bureau of Industry and Security (BIS) announced measures to expand and supplement existing semiconductor export controls to China. The plan expands restrictions on advanced semiconductor manufacturing and advanced computing related semiconductor technologies, and includes 13 Chinese artificial intelligence (AI) semiconductor enterprises on the physical list to prevent China from circumventing existing export control restrictions.
KIEP researchers analyze that this measure will accelerate the localization process of Chinese semiconductor manufacturing equipment and AI semiconductors, so Korean companies need to be prepared for preemptive measures.
The analysis points out that the rise of Chinese semiconductor manufacturing equipment may pose a greater threat to Korean semiconductor manufacturing equipment companies. Compared to the United States, the Netherlands, and Japan, which have established monopolies in various fields, Korean semiconductor manufacturing equipment companies have more intense competition with Chinese equipment companies.
In addition, the analysis suggests that given that the United States is implementing performance-based semiconductor export controls, South Korea must also pay attention to the United States' vigilance against HBM semiconductors required for high-performance AI computing.
KIEP researchers analyze that this measure will accelerate the localization process of Chinese semiconductor manufacturing equipment and AI semiconductors, so Korean companies need to be prepared for preemptive measures.
The analysis points out that the rise of Chinese semiconductor manufacturing equipment may pose a greater threat to Korean semiconductor manufacturing equipment companies. Compared to the United States, the Netherlands, and Japan, which have established monopolies in various fields, Korean semiconductor manufacturing equipment companies have more intense competition with Chinese equipment companies.
In addition, the analysis suggests that given that the United States is implementing performance-based semiconductor export controls, South Korea must also pay attention to the United States' vigilance against HBM semiconductors required for high-performance AI computing.