U.S. Chip Export Curbs on China to Have Limited Impact on South Korea’s Semiconductor Industry.

Seoul: The United States' latest export control measures targeting China are anticipated to have minimal impact on South Korea's semiconductor industry, according to government officials. This assessment is based on the relatively low dependence of South Korean businesses on the Chinese market for semiconductors.According to Yonhap News Agency, the U.S. Commerce Department's Bureau of Industry and Security recently published a new export control package in the Federal Register. This package includes restrictions specifically aimed at curbing the export of high-bandwidth memory (HBM) chips to China. Additionally, the U.S. has announced fresh controls on 24 categories of semiconductor manufacturing equipment and three types of software tools that are used in the development or production of semiconductors."There could be some impact on South Korean firms producing HBMs, but we can minimize the fallout by shifting to export methods allowed under U.S. regulations," stated the Ministry of Trade, Industry and E nergy. In their statement, they also mentioned that the restrictions would primarily target cutting-edge products considered significant to U.S. national security, thereby affecting a limited number of South Korean firms.The ministry highlighted that, despite the U.S.'s intention to apply a "presumption of denial" principle, South Korean businesses operating in China that have previously secured validated end-user status will still be permitted to continue their exports. This exception is expected to mitigate potential disruptions.Furthermore, South Korean authorities have been closely coordinating with the U.S. to ensure that the new measures do not lead to unforeseen consequences for companies in both nations. The two countries have agreed to monitor the implementation of the export controls closely.An official from the industry ministry added, "SK hynix currently ships most of its HBMs to U.S.-based Nvidia. Samsung Electronics exports some low-performance HBMs to China, but the portion is small compa red to its overall sales. Overall, we believe that its impact on South Korean businesses will be minimal."