South Korean chipmakers like Samsung and SK Hynix introduced that they’ll now ship US-made chipmaking tech to their factories in China. Samsung and SK Hynix two of the biggest reminiscence chipmakers, had invested billions of {dollars} in China
South Korea’s presidential workplace and a number of other tech firms like Samsung Electronics and SK Hynix, have introduced that they’re now approved to proceed offering US chip gear to their Chinese language factories with out the necessity for separate approvals from the USA.
It had been anticipated that the US would prolong a beforehand granted waiver to those South Korean chip producers, relieving them from the duty to acquire licenses for importing US chip gear into China.
“Uncertainties about South Korean semiconductor firms’ operations and investments in China have been greatly eased; they will be able to calmly seek long-term global management strategies,” mentioned Choi Sang-mok, senior presidential secretary for financial affairs.
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The US has already notified Samsung and SK Hynix of the choice, indicating that it’s in impact, Choi mentioned.
The US Division of Commerce is updating its “validated end user” checklist, denoting which entities can obtain exports of which know-how, to permit Samsung and SK Hynix to maintain supplying sure US chipmaking instruments to their China factories, the presidential workplace mentioned.
As soon as included within the checklist, there isn’t a must acquire permission for separate export circumstances.
Samsung and SK Hynix, the world’s largest and second-largest reminiscence chipmakers, had invested billions of {dollars} of their chip manufacturing services in China and welcomed the transfer.
“Through close coordination with relevant governments, uncertainties related to the operation of our semiconductor manufacturing lines in China have been significantly removed,” Samsung mentioned in a press release.
SK Hynix mentioned: “We welcome the US government’s decision to extend a waiver with regard to the export control regulations. We believe the decision will contribute to the stabilisation of the global semiconductor supply chain.”
Samsung Electronics makes about 40 per cent of its NAND flash chips at its plant in Xian, China, whereas SK Hynix makes about 40 per cent of its DRAM chips in Wuxi and 20 per cent of its NAND flash chips in Dalian.
The businesses collectively managed practically 70 per cent of the worldwide DRAM market and 50 per cent of the NAND flash market as of end-June, knowledge from TrendForce confirmed.
(With inputs from companies)