South Korean Chipmakers Face Strain as U.S. Considers Revoking China Waivers

South Korean chipmakers, including industry giants Samsung and SK hynix, are navigating heightened tensions due to potential policy shifts from Washington that could affect their operations in China. According to the Korea Herald, U.S. authorities are reconsidering waivers that have allowed these companies to import American chip equipment needed for facility upgrades.

These waivers, initially granted as part of the Biden administration's export controls designed to prevent China from acquiring advanced chip technology, are now under review. As reported by The Wall Street Journal, this policy review is spearheaded by Jeffrey Kessler, a former U.S. Commerce Department official. The move aligns with a broader strategy to restrict crucial U.S. technology from reaching China.

Despite the U.S.'s intensified efforts to limit China's semiconductor industry growth, South Korean firms have proactively implemented strategies to cushion potential setbacks. While some industry specialists suggest that the immediate repercussions may not be severe, there is still caution within the sector due to the significant share of production managed by these companies in Chinese facilities.

(With inputs from agencies.)