US Considering Annual Export Permits to Chinese Plants

The US and South Korea held talks about a compromise deal to allow their chipmakers to import supplies for their factories in China. Annual permits are a possible alternative to the ongoing authorizations that were recently revoked.

The US Commerce Department proposed introducing annual site licences, which would permit chipmakers to import pre-approved qualities of equipment, parts, and materials. While the proposal would add steps for bringing in supplies, it would allow companies producing chips in China to keep their factories running.

The measure is intended to ensure companies do not import gear that could be used to upgrade or expand production facilities. The current validated end-user authorizations, giving chipmakers approval to import certain supplies, will expire at the end of this year.

Over the last two weeks, the US government revoked waivers, thus allowing Intel, Samsung, SK Hynix, and Taiwan Semiconductor Manufacturing Company to ship supplies to their chip facilities in China. This also includes exports of manufacturing equipment.