Samsung wants US to continue allowing chip exports to China: report

Samsung wants US to continue allowing chip exports to China: report
1687352945 samsung wants us to continue allowing chip exports to china.jpeg

Samsung and other South Korean companies are reportedly asking the US government to consider extend to Exemption from chip export controls to China. According to a report in the newspaper The Investor released on Monday (20), the manufacturers are suffering great pressure amid the economic rivalry of the countries.

Semiconductor manufacturers in South Korea have reportedly submitted authorization requests to the US Department of Commerce in order to enable the supply of equipment manufactured in the US country to China, so that the Western power is not isolated from the country’s tax revenue. exchange rate, according to industry sources.

(Image: Samsung)

This process would help to reduce the licensing burden, as US exports could include items allowed for approved entities in an overall policy, rather than being subject to multiple individual licenses.

Samsung, LG and SK Hynix were some of the South Korean companies that stopped supplying electronic components to Chinese manufacturers in 2020, during the first US trade sanctions. The Commerce Department then began to loosen restrictions on Samsung, as well as Western companies such as AMD and Intel.

As early as October last year, the US Department of Commerce again extended chip-related export restrictions. For Samsung and SK Hynix, which run their main factories in China, authority offered a one-year exemptionwhich allowed South Koreans to market without licensing requirements.

Faced with the difficulties, the expectation of the South Koreans is to obtain an additional period of exemption. “Pursuing a renegotiation to obtain a one-year exemption places a heavier burden on companies and makes it more difficult to define a long-term business plan, as nothing is guaranteed,” said a source who requested anonymity.

Restrictions imposed by the US prevent allied countries from supplying chips to China (Image: Reproduction)

About 40% of Samsung’s NAND memory chips are produced at its facility in Xian City, China. A semiconductor packaging factory also operates in the country, in the city of Suzhou. SK Hynix, meanwhile, keeps almost half of its DRAM memory production in Wuxi, in the east of the country.

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(updated on Jun 21, 2023 at 9:28 am)
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