In a recent development, Samsung Electronics and SK Hynix have received approval to continue supplying chip equipment to their factories in China without requiring separate US approvals. This move is a significant relief, easing uncertainties surrounding South Korean semiconductor firms’ operations and investments in China.
Previously, South Korean chipmakers were granted a waiver exempting them from requiring licenses to import US chip equipment into China. The US Department of Commerce is now updating its “validated end user” list, allowing Samsung and SK Hynix to remain on the list and continue supplying specific US chipmaking tools to their Chinese facilities without the necessity of individual export approvals. 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 and SK Hynix, the world’s leading and second-largest memory chip manufacturers, have invested billions of dollars into their chip production facilities in China. They welcomed this decision, emphasizing its positive global impact on the semiconductor supply chain. Samsung released a statement expressing their appreciation for the collaborative efforts with relevant governments, stating that uncertainties related to the operation of their semiconductor manufacturing lines in China have been significantly alleviated. SK Hynix also welcomed the US government’s decision, highlighting its potential to stabilize the global semiconductor supply chain.
This development is anticipated to provide greater flexibility to South Korean chipmakers in managing their operations and investments in China, contributing to the overall stability of the semiconductor industry. The extension of the waiver showcases the continued collaboration and engagement between the US and major semiconductor manufacturers to sustain a robust and efficient global semiconductor supply chain.
