It is reported that the Biden administration has given the green light to South Korean chip factories, allowing Korean companies to extend the license to ship American chip manufacturing equipment to China for one year.
[Financial Channel/Comprehensive Report] It is reported that the Biden administration has given the green light to South Korea's leading chip factory, allowing Korean companies to extend the license to ship American chip manufacturing equipment to China for another year.
Foreign media believe that this concession by the United States to its allies is also the key to uniting with allies to block China from obtaining cutting-edge semiconductors.
The "Financial Times" reported that on October 7 last year, the United States imposed a new chip ban, restricting China's acquisition of advanced logic chips of 16/14 nanometers and below, 128-layer NAND flash memory chips, or the manufacturing equipment required for smaller DRAM chips. Unless approved by the US Department of Commerce, the fabs of Samsung, SK Hynix and other foreign-funded enterprises in China are all included in the scope of control.
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On October 11th, Samsung and SK Hynix obtained the license from the United States. The two companies can obtain the supply of American semiconductor equipment without going through any additional procedures within the next year, allowing the two companies to operate in China's fabs. Will not be affected by the ban for the time being.
However, a year later, whether the exemption license can be successfully extended has caused headaches for the two companies.
At the end of April this year, Korean media disclosed that SK Hynix is delaying the progress of its second 3D NAND Flash factory in Dalian, China.
In a worst-case scenario, SK Hynix may decide to sell the building instead of continuing to install expensive equipment.
The latest news shows that the U.S. has now sent a clear message that South Korean chipmakers will get another waiver for at least a year at their factories in China.
It is unclear what mechanism the U.S. will use to allow them to continue exporting U.S. semiconductor equipment to South Korean chipmakers' factories in China. One possibility is to provide these companies with "open verified end-use" certification, so that No need to seek duplicate authorization.
The effective one-year extension of the waivers, among other measures being discussed, would help South Korean companies maintain a technological edge over Chinese rivals, several people familiar with the matter said. concerns of Chinese rivals.
Kim Yang-paeng, a researcher at the Korea Institute of Industrial Economics and Trade, said that if the exemption is not extended, it will disrupt their wafer production in China. For example, if the wafer manufacturing equipment breaks down and needs to be replaced, repairs will not be possible without continuing the exemption. .
However, even with the exemption, South Korean chipmakers will not be able to ship the EUV exposure machines needed to produce the world's most advanced chips to China.
The U.S. Department of Commerce and Samsung Electronics declined to comment on the policy, while SK Hynix said it could not comment given ongoing negotiations between the U.S. and South Korean governments.
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