Korean chipmakers gain certainty with U.S. authorization, says trade minister

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Korean chipmakers gain certainty with U.S. authorization, says trade minister

Published: 17 Oct. 2023, 16:24

JIN MIN-JI
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Trade Minister Ahn Duk-geun speaks during a meeting held in Seoul on Oct. 14, 2023. [YONHAP]

Korea's trade minister on Tuesday gave a positive assessment of the U.S. government's rule updating general authorizations for Samsung Electronics and SK hynix to keep supplying their China-based plants with certain U.S. semiconductor manufacturing equipment.

The assessment by Trade Minister Ahn Duk-geun came after the United States last week granted the two chipmakers verified end user (VEU) status, which would allow them to obtain a general authorization to secure items, instead of winning licenses individually.

The two companies earlier received a one-year waiver regarding Washington's rule restricting exports of certain advanced chipmaking tools to China-based facilities, which would have expired this month.

"The designation of Samsung and SK hynix's Chinese plants as VEUs has significantly eased uncertainties for Korean firms," Ahn told reporters.

The trade ministry added that it is also closely engaging in talks with the U.S. government on the CHIPS and Science Act as well.

"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.

Concerning the Hamas militant group's recent attack on Israel, Ahn said the issue is giving no immediate impact to the country's exports, although the government is closely monitoring potential volatility in the energy sector.

Yonhap