[2023 National Audit] On "Ban of EUV Import from China" Criticism... Industry Minister Calls Samsung and SK VEU Approval a Tremendous Victory

SanJajung Giwi National Audit Q&A on US 'Measures to Ban Chinese Equipment Import'
Jangseop Lee Points Out "EUV Still Not Allowed for Chinese Import"
Moon Kyu Bang Refutes "Samsung·SK VEU Registration, a Tremendous Victory"

Visiting Minister of Trade, Industry and Energy Bang Moon-kyu said at the National Assembly audit on the 10th, "I think the U.S. government's approval of Samsung Electronics and SK Hynix as VEU (Verified End Users) is a tremendous victory."

On the same day, during the audit by the National Assembly's Industry, Trade, and Small and Medium Venture Business Committee (SanJaJungGiWi), when Lee Jang-seop, a member of the Democratic Party of Korea, pointed out that "Extreme Ultraviolet (EUV) lithography equipment is still confirmed to be unable to be imported into China," Minister Bang responded accordingly.

Choi Sang-mok, the Senior Secretary for Economic Affairs at the Presidential Office, had announced the previous day that "the U.S. government has made a final decision to supply U.S.-made semiconductor equipment to Samsung Electronics and SK Hynix's Chinese factories without separate approval procedures or deadlines."

Lee said, "EUV is necessary to advance the DRAM production process, which accounts for most of SK Hynix's profits, but it is impossible to import it into SK Hynix's Wuxi factory in China." Minister Bang replied, "Currently, EUV equipment is not needed at the Chinese factories, and besides EUV, there are many other advanced equipment."

Lee added, "Even if EUV is not immediately necessary for the DRAM production process, it will be needed in the long term." Minister Bang responded, "I think it aligns better with Korea's strategic interests for domestic factories to act as mother factories and produce cutting-edge products domestically for export."

Minister Bang Moon-gyu of the Ministry of Trade, Industry and Energy responding during the National Assembly's Trade, Industry, Energy, Small and Medium Enterprises and Startups Committee audit held on the 10th.
[Photo by Yonhap News]

Lee further criticized, "(This measure) is just a practical step taken during the U.S. supply chain restructuring process, and I have doubts whether Korea has achieved a significant outcome." Minister Bang replied, "I think the U.S. government's approval of Korea as a VEU is a tremendous victory," adding, "I don't think there is a need to belittle the partial achievements made."

During the afternoon questioning, some lawmakers also pointed out that the equipment exemption measure is not a major achievement of the government. Minister Bang maintained his opinion that it is definitely not the case.

Yang Hyang-ja, a member of the Korean Hope Party, pointed out, "(Companies receiving U.S. subsidies) are prohibited from expanding more than 5% in China for the next 10 years, so the indefinite exemption of equipment is not a significant benefit for Korea." Minister Bang said, "If equipment is imported into the Chinese factories and technology development succeeds, production could increase by more than 5% or 10%."