U.S. Government Urges South Korea and Germany to Participate in Semiconductor Export Regulation Network

Bloomberg reported on the 6th that the U.S. government has been pressuring South Korea and Germany into participating in strengthening the semiconductor export regulation network against China. This is interpreted as the U.S. urging other countries to participate in the regulation to fill the gaps that have been exposed despite semiconductor export regulations, such as Huawei in China launching state-of-the-art smartphones last year.

Bloomberg reported through the industrial media that the U.S. government has asked South Korea, Germany, and others to participate in regulating semiconductor exports to China. South Korea was asked to control the export of semiconductors and parts for semiconductor manufacturing equipment.

The U.S. has also been known to urge the Netherlands to halt additional services and repairs for products that ASML, the world’s largest semiconductor equipment company, sold to China. In addition, the U.S. suggested a Japanese chemical materials company leading the global market, JSR, and other companies restrict the export of photoresist, a key material for semiconductors, to China.

However, Bloomberg reported that Japan and the Netherlands reacted “indifferently” to these requests from the U.S. They believe they should discuss additional measures after evaluating the impact of the existing export restrictions.

According to a source, ASML needs to get approval from the Dutch government to repair equipment subject to export regulations, but the authorities’ approval process is lax and not thorough.

Despite U.S. export controls, China’s semiconductor sales continue to grow. According to the U.S. Semiconductor Industry Association (SIA), on January 6th, China’s semiconductor industry sales increased by 26.6% compared to last year. Global semiconductor industry sales increased by 15.2% during this period, so it can be seen as a high growth rate.

Bloomberg reported that the U.S. hopes to strengthen export restrictions in Japan and the Netherlands and increase participation in the control of exports to China from major semiconductor powers such as South Korea and Germany. The U.S. government has consistently requested South Korea and Germany’s participation in export control, but this is also a demand from the industry side that had been participating in the existing regulations. In response, the U.S. government appears to be urging Germany to agree before the G7 summit in June.

According to Bloomberg, the U.S. government has been continuously consulting with South Korea about export control. South Korea plays a key role in the supply of spare parts needed for semiconductor production and equipment. The two countries have been discussing multi-party export control participation since last year, and it is known that they started more advanced talks last month.