Daily Management Review

South Korea Requests The US To Address Chip Trade Difficulties


According to South Korea, the United States has been contacted to clarify any ambiguities over incentives for chip investment and export restrictions.
Before the year-long waiver for Samsung Electronics and SK Hynix to import American chip-making equipment into China expires next month, Industry Minister Bang Moon-kyu met with U.S. Deputy Secretary of Commerce Don Graves in Seoul on Friday.
The South Korean couple were able to supply equipment for their chip manufacturing facility in China without needing to obtain new licences thanks to the waiver.
When the waiver expires in October, the U.S. has not specified how, why, or under what circumstances it might be renewed. These conditions could have an additional impact on the companies' China manufacturing plans.
The U.S. Department of Commerce has been approached by Bang for "active cooperation" in order to resolve export control-related concerns, according to a statement from South Korea's Ministry of Trade, Industry, and Energy.
While SK Hynix produces DRAM chips in Wuxi and NAND Flash in Dalian, Samsung Electronics manufactures NAND flash memory in Xian, China. According to data from TrendForce as of June's end, the corporations collectively own close to 70% of the worldwide DRAM industry and 50% of the NAND flash market.
Separately, in March, the US Department of Commerce put restrictions in place for investors hoping to qualify for huge subsidies under the CHIPS Act. These safety nets restrict the growth of semiconductor manufacture in China for 10 years after receiving funding.
Analysts anticipate that further information on the situation will be released soon.
The main application for U.S. subsidies has been finished by Samsung, which is constructing a chip plant in Texas to start shipping in late 2024, and the company may learn the outcome by year's end, according to people with knowledge of the situation who declined to be named because the information was private.
There were no comments on the issue from Samsung.