The US intends to limit the production of South Korean
Hardware

The US intends to limit the production of South Korean chips in China

The US intends to limit the development of semiconductor production by South Korean companies based in China, Reuters reports, citing a senior US official source.

    Image source: Samsung

Image source: Samsung

In October 2022, the US imposed new import restrictions on chipmaking equipment in China in a bid to combat China’s technological ambitions and limit the capabilities of its military-industrial complex. Samsung Electronics and SK Hynix, the world’s leading memory chip makers, were given a one-year reprieve that allowed them to avoid restrictions on supplying equipment for their production in China. However, according to US Department of Commerce representative Alan Estevez (Alan Estevez), level capping is likely in the future after the end of the delay. “Why her [корейские производители] can grow up in China”.

In his opinion, the development should continue approximately at the level at which the production of Korean business in China is now. Estevez, who is in charge of limiting technology exports to China, said the United States has no intention of harming companies from allied countries but is willing to impede the development of Chinese capabilities that threaten the allies’ collective security. A “deep” dialogue is now being held with Korean companies.

However, on Friday, Korea’s Ministry of Commerce, Industry and Energy said there were no concrete talks on introducing technology-level limits between South Korea and the United States. The countries agree that ongoing operations and future investments by South Korea’s chipmakers should not be disrupted, the ministry said. At the same time, the ministry representative added that the South Korean government plans to discuss in detail expanding imports of chip-making equipment to China. Samsung and SK Hynix are not commenting on the situation.

Over the past few decades, Samsung and SK Hynix, which control about half of the global NAND market, have invested heavily in manufacturing in China to make chips that are critical not only to local customers but also to tech giants like Apple and Amazon meaning are.

Earlier, representatives of the US authorities confirmed the existence of an agreement between the United States, on the one hand, and Japan and the Netherlands, on the other hand, on the introduction of new restrictions on the export of chip-making equipment to China.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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