US Eases Restrictions, Allowing Samsung and SK hynix to Supply Equipment to Chinese Facilities
In October 2022, the US government had imposed export controls with the intention of preventing China from acquiring advanced semiconductor technology. However, these controls encountered staunch opposition from both the South Korean government and businesses, contending that they would disrupt the global semiconductor supply chain and strain US relations with its allies.
Under the new agreement, Samsung and SK hynix will be permitted to import equipment for their Chinese plants without the need for additional US government licenses. This agreement is effective immediately. A spokesperson from Samsung expressed gratitude to the US government, stating, “We appreciate the decision, as it enables us to sustain our investments in our Chinese facilities and meet the growing demand for semiconductors in the Chinese market.”
SK hynix also welcomed the decision, emphasizing that it “will enhance our competitive position in the Chinese market and contribute to the local economy.” This decision signifies a major advancement for Samsung and SK hynix, both of which have been actively pursuing expansion in China.
These two companies are substantial suppliers of memory chips, vital components for a wide array of electronic devices, including smartphones, computers, and servers. Additionally, the decision represents a success for the South Korean government, which had been advocating for the relaxation of these export controls. The government argued that such controls would negatively impact the South Korean economy, which heavily relies on the semiconductor industry.
