Samsung, SK Hynix lose US waiver on chip gear for China use
Samsung manufactures about 35-40% of its total NAND flash memory chips at its plant in Shaanxi, while SK Hynix produces about 40% of its DRAM in Jiangsu and 20% of NAND flash chips in Liaoning.
The US is making it more difficult for Samsung and SK Hynix to produce chips in China by revoking authorizations that allowed the chipmakers to receive US semiconductor manufacturing equipment there, according to a report by Reuters which quoted a federal filing.
The revocations will take effect in 120 days.
The Biden administration had allowed the two companies to send US chipmaking tools to their Chinese plants without having to apply for a licence for each transfer. But now the two world’s two largest producers of memory chips need to obtain licenses to buy the equipment for China.
Intel is also among the companies that lost their authorization for China. However, Intel has already sold its Dalian China unit.
Samsung manufactures about 35-40% of its total NAND flash memory chips at its plant in Shaanxi, while SK Hynix produces about 40% of its DRAM in Jiangsu and 20% of NAND flash chips in Liaoning, according to a report by The Korea Economic Daily.
Samsung and SK Hynix may change their long-term strategy on their Chinese units to avoid disruption to their production.
