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The United States will extend Samsung and SK Hynix's exemption from selling chips to China
2023-10-03

According to reports, the United States is expected to indefinitely extend the exemption for South Korean chip manufacturers Samsung and SK Hynix to import US chip equipment at their factories in China. Multiple sources have stated that the United States will release relevant announcements as early as this week.


Samsung and SK Hynix were authorized by the US Department of Commerce last year to export Chinese chip production equipment within one year without the need for further licenses.


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According to the report, the US Department of Commerce will update the "Verified End Users" (VEUs) list to list which entities can obtain exports of which types of technologies, allowing Samsung and SK Hynix to continue to acquire certain US chip manufacturing tools.


Once included in the list, there is no need to apply for a separate export license. This means that US export controls are actually indefinitely suspended.


The US Department of Commerce has been discussing future plans with Samsung and SK Hynix, specifying equipment that can be imported into Chinese production lines, as future business also requires equipment upgrades.


Samsung and SK Hynix declined to comment on the above news.


As the two largest storage chip manufacturers in the world, they have been deeply rooted in the Chinese market for many years. Samsung Electronics produces NAND flash memory at its Xi'an factory, while SK Hynix produces DRAM chips and NAND flash memory in Wuxi and Dalian, respectively. Both companies have invested billions of dollars. According to Trend Force Consulting, as of the end of June this year, these two Korean companies controlled nearly 70% of the global dynamic semiconductor memory (DRAM) and 50% of the flash memory chip (NAND) market share.


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