Samsung to Continue Supplying US Chip Gear to China Under Indefinite Waiver

According to South Korea’s presidential office and the firms, Samsung Electronics and SK Hynix would be able to send US semiconductor equipment to their China operations without further U.S. licenses forever. This news has truly provided a sigh of relief for South Korean techies. Samsung and SK Hynix are undoubtedly the world’s largest and second-largest memory chip makers, and they have always considered the semiconductor division in China as they had spent billions of dollars in their chip production facilities in China. So it is obvious for them to applaud the move.

It was anticipated that the United States would extend a waiver given to South Korean chipmakers on the necessity of importing US chip equipment into China. According to Choi Sang-mok, who is the Senior Presidential Secretary for Economic Affairs, the US has already notified Samsung and SK Hynix of the judgment, indicating that it is in effect. The US Department of Commerce is amending its “validated end user” list, which indicates which firms can receive technology exports, to allow Samsung and SK Hynix to continue sending some U.S. chip-making equipment to their China plants, according to the presidential office.

Once on the list, there is no need to get clearance for individual export situations.

Samsung Electronics manufactures around 40% of its NAND flash chips in Xian, China. At SK Hynix, approximately 40% of its DRAM chips in Wuxi and 20% of its NAND flash chips in Dalian are manufactured by the firm in particular. According to TrendForce statistics, the corporations controlled roughly 70% of the worldwide DRAM industry and 50% of the NAND flash market by the end of June.

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Choi Sang-mok, senior presidential secretary for economic affairs, stated, 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.”

Samsung commented,Through close coordination with relevant governments, uncertainties related to the operation of our semiconductor manufacturing lines in China have been significantly removed.”

SK Hynix stated,We welcome the U.S. government’s decision to extend a waiver with regard to the export control regulations. We believe the decision will contribute to the stabilization of the global semiconductor supply chain.”

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