South Korea has asked the United States to resolve uncertainties regarding export controls in the chip sector and subsidies for chip investment.
In a Friday meeting between the two countries held on South Korea’s capital, Seoul, Minister Bang Moon-kyu, Deputy Secretary of Commerce, Don Graves, alongside South Korean and the US representatives, discussed the year-long waiver for Samsung Electronics and SK Hynix to import U.S. chip-making equipment into China, a waiver which is to expire in October this year.
While Samsung Electronics has NAND flash memory production in Xian, China, SK Hynix has DRAM chip production in Wuxi and NAND Flash production in Dalian. The companies together control nearly 70% of global DRAM and 50% of NAND flash markets as at June-end, as shown by data from TrendForce.
The waiver allowed the South Korean pair to supply equipment for their chip production facilities in China without additional licensing requirements.
U.S. authorities are still silent on whether or not the waiver would be extended after it expires next month.
Yemi Olajutemu
Philips Babatunde