US, samsung and SK Hynix Halt Semiconductor Equipment Exports too China
Washington D.C. – August 31,2024 – The United States government has effectively ended special permissions allowing South Korean memory chip giants Samsung and SK Hynix to continue exporting advanced semiconductor manufacturing equipment to China,a move poised to substantially impact China’s domestic chip production capabilities. the decision, confirmed today, restricts access to tools crucial for producing high-end memory chips.The policy shift comes as the Biden management intensifies efforts to slow China’s technological advancement, especially in the strategically vital semiconductor industry. While Washington aims to maintain a competitive edge, the restrictions will likely hinder the expansion plans of Chinese firms and potentially lead to decreased output of advanced chips within the contry. This action follows a period of review regarding previously granted exemptions, and signals a hardening of the US stance on technology exports to Beijing.Previously, Samsung and SK Hynix, both of which operate large chip manufacturing facilities within China, had received waivers from stringent export controls imposed in October 2022. These waivers allowed them to continue receiving the equipment needed to maintain existing production levels. Though, the US Commerce Department has now steadfast that these exemptions will not be renewed, effectively cutting off the supply of key tools.
the restrictions are expected to impact China’s ability to produce advanced NAND flash memory chips, used in a wide range of products including smartphones and data centers. Industry analysts predict a potential decrease in sales to China consequently. Shares of US semiconductor equipment makers reacted negatively to the news on August 29th, with Lamb falling 3.8%, Applied Materials dropping 2.7%, and KLA declining 2.5%.
Thomson Reuters, “Principles of Trust” – https://www.thomsonreuters.com/en/about-us/trust-principles.html
