Samsung and SK Hynix will no longer be able to upgrade their chip facilities in China. This follows the decision of the US Commerce Department to revoke their licenses to use US-made equipment in the country.
Both companies operate manufacturing plants in multiple regions, including China. For reference, Samsung focuses on producing legacy chips while high-end chip production remains in South Korea and the US.
The revoked licenses will not affect their existing facilities and current equipment. However, Samsung and SK Hynix will be unable to replace or install new machinery should existing hardware fail.
The move is part of ongoing efforts by the US to curb China’s access to advanced semiconductor technology. In doing so, the US is also reducing the country’s role in the global chip supply chain.
This development adds another challenge for Samsung’s chip division and further complicates manufacturing operations for both South Korean companies.
China and the US are operating under a tariff truce, with levies of 30% on Chinese imports to the US. This also includes 10% on Chinese duties for US goods until November.
The trade war between the two economic powers has affected everything from rare earths to soybeans. We’ll update for any further developments between the licensing issues rooted from the ongoing trade war.
0 Comments
Leave a Reply