Washington: The United States has unveiled a comprehensive semiconductor export control package aimed at China, focusing on high-end chips crucial for artificial intelligence applications. This move is expected to have implications for the South Korean semiconductor industry. According to Yonhap News Agency, the Commerce Department's Bureau of Industry and Security (BIS) announced the package on the Federal Register. It includes restrictions on the export of high bandwidth memory (HBM) chips, a market dominated by South Korean firms Samsung Electronics Co. and SK hynix, along with Micron Technology. This initiative aligns with Washington's broader strategy to limit China's access to critical technologies due to national security concerns. Secretary of Commerce Gina Raimondo emphasized that the action is a result of the Biden-Harris Administration's coordinated efforts with allies and partners to restrict China's ability to produce advanced technologies that may threaten U.S. national security. The new rules apply the Foreign Direct Product Rules, subjecting foreign-produced products to restrictions if they are made using U.S. technology, software, or equipment. The new HBM chip restrictions are set to be enforced by December 31, targeting chips with memory bandwidth density exceeding 2 gigabytes per second per square millimeter. While Samsung may feel the impact due to its HBM sales to China, SK hynix is expected to face minimal immediate effects as it exports its HBM products to the United States. The BIS highlighted the significance of controlling HBM commodities used in AI applications, which can support advanced military and intelligence functions, facilitate the development of weapons of mass destruction, and enable mass surveillance that can lead to human rights violations. Additionally, the Commerce Department announced new controls on 24 types of semiconductor manufacturing equipment, three types of software tools for semiconductor development or production, and added 140 entities related to China's m ilitary modernization to its "Entity List."