The US government has agreed to waive export controls that would have required Samsung and SK hynix to obtain additional licenses to supply equipment to their Chinese factories. The decision, which was announced by the South Korean presidential office on Tuesday, is a major victory for the two South Korean chipmakers, which have invested billions of dollars in China. Here are the details…
US Agrees to Let Samsung and SK Hynix Supply Equipment to Chinese Plants
The US government imposed the export controls in October 2022 in an effort to prevent China from gaining access to advanced semiconductor technology. However, the controls were met with strong opposition from the South Korean government and businesses, which argued that they would harm the global semiconductor supply chain and damage relations between the US and its allies.
Under the new agreement, Samsung and SK hynix will be able to import equipment for their Chinese factories without having to apply for additional licenses from the US government. The agreement is effective immediately. “We are grateful to the US government for its decision, which will allow us to continue to invest in our Chinese factories and meet the growing demand for semiconductors in the Chinese market,” said a Samsung spokesperson.
SK hynix also welcomed the decision, saying it “will help us to strengthen our competitiveness in the Chinese market and contribute to the local economy.” The decision is a major step forward for Samsung and SK hynix, which have been seeking to expand their presence in China.
The two companies are major suppliers of memory chips, which are used in a wide range of electronic devices, including smartphones, computers, and servers. The decision is also a win for the South Korean government, which has been lobbying the US to ease the export controls. The government has argued that the controls would harm the South Korean economy, which is heavily reliant on the semiconductor industry.
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(via)
