U.S. Requires Korean Suppliers to Show Certificate that Chips are not Produced in Communist China

On September 29th, local time, the media reported that chip customers in the United States rejected products from Communist China. American customers requested a certificate of origin to prove that the product was not produced by a foundry in Communist China, even though the chip design came from a South Korean company.

It is reported that the South Korean company recently received stricter requirements from American customers and must attach a description of the country of origin of the chip to the contract. Companies that supply a large number of wafers to the United States have withdrawn their large-scale production plans for SMIC, a Chinese foundry, due to concerns about U.S. export restrictions. An official in the chip industry said that from July to August, the requirement to provide the country of origin of the chip was spreading in the industry, in order to exclude Communist China from the industry. The vast majority of U.S. customers are avoiding various possible sanctions by the U.S. government. Some companies have even changed the origin of chips manufactured in Taiwan to “Taiwan” instead of using the original “Republic of China”.

Since the introduction of the U.S. Chip and Technology Law, sanctions against the Chinese Communist Party have even reached the details of the chip manufacturing process. The United States has excluded Communist China’s products, materials, parts and equipment, and some semi-finished chips also have to prove that the country of origin is not from Communist China. The chairman of the Korea Fabless Industry Association believes that a supply chain restructuring is highly likely to occur in order to deal with U.S. customers, which could be an opportunity for the Korean fabless industry.