Samsung blocking China from chip equipment 'encouraging,' U.S. official says

Alan Estevez, U.S. under secretary of commerce for industry and security, speaks during a forum in Washington, D.C., on Dec. 12, 2023. [YONHAP]

A senior U.S. official called Korean companies' reported move to stop selling used chip equipment to China “encouraging” as Washington pressures its allies to exert tighter export controls on key technologies.

Alan Estevez, U.S. undersecretary of commerce for industry and security, made the remarks in his written statement presented at a hearing of the House Foreign Affairs Committee, entitled “Countering China on the World Stage: Empowering American Businesses and Denying Chinese Military Our Technology.”

“It has been encouraging to see allies and partners recognizing the threat the PRC and others pose and taking appropriate actions to address security concerns regarding semiconductors, and other emerging technologies, through their domestic legal systems,” Estevez said. PRC stands for China's official name, the People's Republic of China.

“It has been reported that key South Korean firms intend to no longer sell used semiconductor manufacturing equipment to the PRC. Also, the governments of the Netherlands and Japan have announced and implemented controls on semiconductor manufacturing equipment,” he noted.

Last week, the Financial Times reported that Samsung Electronics and SK hynix had stopped selling old chipmaking equipment as a nod to Washington's calls for heightened semiconductor export controls.

The Korean companies confirmed the decision to the Korea JoongAng Daily, stating that they had long aligned themselves with the rules set by the U.S. government.

During the hearing, Estevez pointed out that the United States has been seeking controls on the servicing and components of equipment already sent to China since before its export restrictions went into effect.

“I am racking up frequent flyer miles, talking to our allies about what they are doing, how they are doing it and making sure that we have parity between U.S. companies and the companies in our allied nations so that we are all having similar controls,” he said.

Estevez said at a forum in December that the United States, South Korea and other allies were in “preliminary” talks regarding creating a new export control regime to prevent cutting-edge technologies, including semiconductors and quantum computers, from being transferred to potential adversaries.

BY PARK EUN-JEE, YONHAP [park.eunjee@joongang.co.kr]