Washington: The United States has unveiled a new semiconductor export control package aimed at China, focusing on high-end chips used for artificial intelligence (AI), which could significantly impact the South Korean industry. The Commerce Department's Bureau of Industry and Security (BIS) announced the package on the Federal Register, highlighting restrictions on the export of high bandwidth memory (HBM) chips. Global leaders in the HBM market, Samsung Electronics Co., SK hynix, and Micron Technology, are expected to be affected by these regulations. According to Yonhap News Agency, the package aligns with Washington's ongoing efforts to restrict China's access to key technologies for national security reasons, as President Joe Biden prepares to leave office on January 20. President-elect Donald Trump is anticipated to continue a stringent policy stance on China. Secretary of Commerce Gina Raimondo stated that the measures are part of the Biden-Harris Administration's targeted strategy, developed in cooper ation with allies, to hinder China's capacity to produce advanced technologies that threaten U.S. national security. The BIS has applied Foreign Direct Product Rules to the latest package, making products manufactured abroad, using U.S. technology, software, or tools, subject to these restrictions. The HBM restrictions, effective from December 31, target chips with a memory bandwidth density exceeding 2 gigabytes per second per square millimeter. Industry observers suggest that while Samsung may face challenges due to its shipments to China, SK hynix may experience minimal immediate impact, as it exports all its HBM products to the United States. The BIS emphasized that limiting HBM commodities for AI applications is crucial as they can support advanced military and intelligence operations, facilitate the development of weapons of mass destruction by non-experts, enable offensive cyber operations, and assist in mass surveillance that could lead to human rights abuses. Additional controls have been imposed on 24 types of semiconductor manufacturing equipment (SME) and three types of software tools for semiconductor development and production. Furthermore, 140 entities associated with China's military modernization have been added to the "Entity List." New Foreign Direct Product controls have also been established for certain SME items originating in foreign countries but produced with U.S. technology, software, or tools. This measure might influence Korean exports of chipmaking equipment. Japan, the Netherlands, and 31 other countries with export controls equivalent to those in the U.S. are exempt from certain SME license requirements for exports. However, South Korea is not included in this list. Of the 140 entities added to the export control list, two are Korean companies: ACM Research Korea Co. and Empyrean Korea. In response, China's foreign ministry pledged to take "resolute measures" against the new export restrictions. Lin Jian, the ministry's spokesperson, expressed China's firm opposition to what it sees as the U.S.'s overextension of national security concepts, misuse of export controls, and attempts to suppress China maliciously. Lin criticized the actions as violations of market economy laws and fair competition principles, warning that they could disrupt international economic and trade order, destabilize global industrial and supply chains, and eventually harm the interests of all nations.