We all know that the US has imposed several restrictions and bans on China. Such measures are affecting different sectors of the tech industry. Since many companies have their production plants in China. From this perspective, the US has restricted chip companies to export products to China particularly the one based on US technology. Well, the company has exempted a few companies from the list and Samsung Electronics is one such company.
As of now, the South Korean companies have demanded the US government extend this exemption for an indefinite period and thus ease the export controls to China. Since it will be quite helpful in releasing the pressure mounted on chip companies due to the tensions between the two countries.
Samsung asked for a critical exemption
They will be free to continue exporting equipment made in the US to their plants in China because of this indefinite exemption. Since US exports will be able to transport permitted commodities to approved companies under a general authorization rather than needing to see many specific export licenses. In this way, this action would also go a long way toward easing the licensing burden.
Last year, when the US government imposed restrictions on China, the South Korean chip company Samsung Electronics was granted an exemption of one year by the US Commerce Department. The company had the right to export US equipment to its factories in China. Samsung runs two plants in China. One is located in the Chinese city of Xian. It is associated with the production of NAND chips that account for 40% of total production. Another plant associated with the packaging of semiconductors is located in Suzhou.
Do note that the company has not shared any details on this subject. Some media reports indicate that the company is seeking an exemption for an indefinite period from the US export controls. It is anticipated that a decision could be made sooner or later.
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