The U.S. will exclude Chinese chips from its government procurement website starting next year.

South Korean media: The US will remove Chinese chips from procurement networks starting next year

¬ Samsung Electronics and SK Hynix benefit

It is reported that starting from the end of next year, the US will completely remove Chinese chips from its government procurement network. Analysts say that due to recent shortages of memory chips leading to a sharp increase in prices, major companies have considered purchasing Chinese-made chips, prompting the US government to block this move at the source.

On February 17, the US Federal Acquisition Regulation Council announced in its official publication that it would prohibit the purchase of chips produced by China's largest foundry (chip manufacturing) SMIC, DRAM company CXMT, NAND flash company YMTC and their subsidiaries, as well as products equipped with chips designed and produced by these companies. The new regulation will take effect on December 23, 2026. This measure effectively removes Chinese chips from the US federal government supply chain.

After the implementation of the new regulation, manufacturers will not be allowed to deliver products equipped with chips produced by the aforementioned Chinese companies to the US government. Computers, smartphones, and other devices supplied to the Federal Communications Commission (FCC) or the Federal Bureau of Investigation (FBI) must not be equipped with Chinese-made chips. The scope of application of this regulation covers small purchases below $15,000 or finished products circulating in the general market, effectively covering all electronic products.

Analysts said that due to the severe shortage of chips, companies are considering purchasing Chinese-made chips, so the US government has blocked this move at the source. Since the beginning of this year, the price of memory chips has risen more than twice compared to the same period last year. Not only PC manufacturers such as Dell and HP, but even smartphone manufacturers like Apple have started to consider using Chinese-made chips. The public expects that as the influence of Chinese chip companies declines, South Korean chip companies such as Samsung Electronics and SK Hynix will benefit from this situation.

Source: Chosun Ilbo

Original: toutiao.com/article/1858848704564236/

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