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South Korea sends chipmaking equipment to China — and the U.S. wants it to stop

Apr 02, 2024 - qz.com
The U.S. is reportedly urging South Korea to impose export controls on semiconductor tools to China, in a bid to curb the latter's advanced chipmaking capabilities. The restrictions would apply to memory chips and advanced logic chips, including CPUs and GPUs, more advanced than 14-nanometer and 18-nanometer respectively. The discussions took place in March, with the U.S. aiming to reach an agreement before the G7 summit in June. However, South Korean officials are considering the potential impact on major firms like Samsung and SK Hynix that operate in China.

The Biden administration has been tightening export controls on advanced AI chips and chipmaking tools from U.S. firms to China since 2022, in an attempt to slow China's progress in AI and military development. This follows a 2019 ban by the Trump administration on shipments from U.S. companies to Huawei without an export license. The U.S. is also pressuring other allies, including Japan and the Netherlands, to limit exports of advanced chipmaking technology to China, as part of efforts to revive chipmaking efforts domestically.

Key takeaways:

  • The U.S. is reportedly asking South Korea to restrict exports to China of equipment and technology used to make memory chips and advanced logic chips, such as CPUs and GPUs.
  • South Korean officials are considering the U.S. request but are concerned about potential repercussions on major South Korean firms, including Samsung and SK Hynix, operating in China.
  • The U.S. and South Korea will also meet with Japan in June to discuss cooperation on advanced chipmaking.
  • The U.S. has tightened export controls on shipments of advanced AI chips and chipmaking tools from U.S. firms to China since 2022, in an effort to slow China's progress in AI and military development.
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