In a recent move, the U.S. designated semiconductor plants of Samsung Electronics and SK hynix in China as “Verified End Users (VEU).” In response, Ahn Deok-geun, the chief trade negotiator of the Ministry of Trade, Industry, and Energy, said, “By mobilizing consultation channels centered on the Presidential Office and the Ministry, and closely communicating with corporations, we have significantly alleviated uncertainties for our semiconductor companies.”
Speaking at a press conference in the Ministry’s press room at the Sejong Government Complex on Oct. 17, Ahn emphasized, “U.S.-South Korea leadership has continually affirmed its commitment to close cooperation on semiconductor-centric advanced industry supply chains and export controls.” He added, “The U.S. also mentioned that the recent VEU approval reflects the ‘robust South Korea-U.S. alliance,’ taking into account the extensive consultations between the two countries.”
VEU, a term from U.S. export control regulations, implies that selected items from the designated company can be exported without a separate approval process or expiration date.
The U.S. had announced and implemented an export control on October 7th 2022, preventing American companies from exporting semiconductor equipment essential for producing advanced semiconductors in China. According to this control, companies wishing to sell equipment and technology capable of producing logic chips using FinFET technology (16 nm or below 14 nm), DRAM of 18 nm or less, and NAND flash with 128 layers or more to Chinese companies must obtain permission from the U.S. government.
With their VEU designation, Samsung Electronics and SK hynix receive exceptions from these export control regulations. However, certain items, like the extreme ultraviolet (EUV) lithography machines essential for advanced semiconductor production, are still under control.