(JW Insights) Aug 25 -- The U.S. government is considering extending the waiver on export controls for semiconductor manufacturing equipment applied to South Korean and Taiwanese companies, reported Business Korea on August 23 citing Japan's Nikkei newspaper. This waiver is set to expire in October.

Quoting multiple industry insiders, Nikkei reported that the U.S. government has firmed up its intention to extend the waiver. In a meeting with the semiconductor industry last June, Alan F. Estevez, the U.S. Deputy Secretary of Commerce, hinted at the extension.

Last October, the U.S. government, aiming to curb China, mandated U.S. companies to obtain licenses if they wish to sell equipment or technology to Chinese companies capable of producing FinFET technology-based logic chips (16 nm to 14 nm), DRAM of 18 nm or less, and NAND flash with 128 layers or more.

The rule also applied to foreign companies, including those from Korea, which required special approval from the U.S. Department of Commerce if they intended to bring U.S. semiconductor equipment and technology into China, reported Business Korea.

Samsung Electronics, SK hynix, and Taiwan's TSMC, all of whom have manufacturing bases in China, persuaded U.S. authorities, arguing that this would greatly impact their businesses. In response, the U.S. government granted these companies a one-year waiver from the export controls, set to last until October this year.

The U.S. government plans to extend the waiver under the same terms for South Korean and Taiwanese companies. This will enable these companies to continue importing U.S.-made semiconductor manufacturing equipment for their existing Chinese factories, said the Business Korea report.

While the duration of the extension remains undetermined, Nikkei mentioned that an indefinite extension is also being considered.

(Li PP)