Samsung and SK Hynix Allowed to Supply U.S. Chip Equipment to China Factories Without Separate Approvals
Samsung and SK Hynix Receive Waiver to Supply U.S. Chip Equipment to China Factories
Samsung Electronics and SK Hynix have been granted permission to supply U.S. chip equipment to their China factories indefinitely without the need for separate U.S. approvals, according to South Korea’s presidential office and the companies themselves. The waiver, which was expected to be extended, means that the South Korean chipmakers can continue to bring U.S. chip equipment into China without the requirement for licenses.
Choi Sang-mok, senior presidential secretary for economic affairs, stated that this decision would ease uncertainties surrounding the operations and investments of South Korean semiconductor firms in China, allowing them to pursue long-term global management strategies with confidence.
The U.S. Department of Commerce is in the process of updating its “validated end user” list, which designates the entities eligible to receive exports of specific technologies. Once Samsung and SK Hynix are included in this list, they will no longer need to obtain separate permission for export cases, streamlining their operations.
Samsung and SK Hynix Welcome the Decision
Both Samsung and SK Hynix, as the world’s largest and second-largest memory chipmakers, have made significant investments in their chip production facilities in China. They have expressed their satisfaction with the U.S. government’s decision to extend the waiver, as it will contribute to the stability of the global semiconductor supply chain.
Samsung currently produces approximately 40% of its NAND flash chips in Xian, China, while SK Hynix manufactures about 40% of its DRAM chips in Wuxi and 20% of its NAND flash chips in Dalian. Together, these companies control nearly 70% of the global DRAM market and 50% of the NAND flash market as of June, according to TrendForce data.
The extended waiver will provide a boost to Samsung and SK Hynix, ensuring uninterrupted supply of U.S. chip equipment to their China factories and enabling them to continue meeting the global demand for memory chips.
