American New Rules Limit Samsung, SK Hynix and Intel from Manufacturing Chips in China
According to the latest Federal Register, the United States will revoke the exemption licenses granted to major international chip manufacturers Samsung, SK Hynix and Intel for obtaining U.S. semiconductor manufacturing equipment in China. This move means these companies will face stricter restrictions on chip production in China.
Reuters reported that since 2022, the U.S. Department of Commerce has implemented strict controls on the export of U.S.-made semiconductor equipment to China. However, at that time, Samsung, SK Hynix and Intel were given exemptions, allowing them to maintain operations at their existing factories in China. According to the new regulations, these companies will now have to apply for export licenses on a case-by-case basis if they want to purchase related equipment in China.
The announcement stated that the cancellation of the exemptions will take effect after 120 days. The Department of Commerce said it will approve licenses to ensure the continued operation of existing factories, but will not allow expanding capacity or upgrading to advanced technologies.
Analysts believe this move will significantly increase the difficulties for South Korea's two major memory chip manufacturers in China, and may indirectly benefit their American competitor Micron Technology.
However, the restriction measures may also impact U.S. semiconductor equipment suppliers, including KLA Corp, Lam Research and Applied Materials. The shares of the three companies fell in the New York stock market on Friday, with declines ranging from 2.8% to 4.4%.
Trade and Geopolitical Context
Insiders said that the U.S. move is "preparing for a potential breakdown of the U.S.-China trade truce." Currently, the U.S. and China are maintaining a tariff ceasefire, with the U.S. maintaining a 30% tariff on Chinese goods, while China imposes a 10% tariff on U.S. products. This arrangement will last until November.
Chris Miller, author of "The Chip War," said the new rules "will make it more difficult for South Korean chip manufacturers to produce advanced chips in China." He added that if the U.S. does not simultaneously restrict Chinese manufacturers such as Yangtze Memory Technologies (YMTC) and Changxin Memory Technologies (CXMT), it could allow Chinese companies to seize the opportunity to expand their market share.
Currently, the U.S. Department of Commerce still has thousands of applications for export licenses to China, involving billions of dollars worth of semiconductor equipment, with slow progress. The "Verified End User" (VEU) status previously enjoyed by Samsung and SK Hynix will also be revoked, meaning they will have to apply on a case-by-case basis, and the approval process will become more complicated.
Original: www.toutiao.com/article/1841846666348745/
Statement: This article represents the views of the author himself.