Samsung and SK Hynix can continue their chipmaking operations in China

[Alfonso Maruccia]

Forward-looking: While the US and China are still clashing over silicon supremacy and economic sanctions against the Middle Kingdom's technology industry, South Korea has won some important concessions through Washington diplomacy. The Asian giant will continue to do business and make chips in China, at least for now.

Samsung and SK Hynix, two of South Korea's most prominent technology players, have been excluded from the US sanctions imposed against Beijing's technology prowess. The two companies are officially allowed to keep making chips in China and to bring their advanced chipmaking equipment into the neighboring country.

Created after the merging of Hyundai Electronics and SK Group, the third largest conglomerate in South Korea, SK Hynix is the world's second-biggest memory manufacturer after Samsung. The two corporations have their own semiconductor plants in China, which should theoretically be subject to sanctions imposed by the US government against exporting the latest and greatest chip manufacturing machines to the Asian country.

South Korea is one of the US's major allies in Asia, and Washington is trying to strengthen its influence in the area to keep pressure on China high. Therefore, Seoul could have tried to take advantage of its leverage over the US to try and avoid hurting two of South Korea's most important technology companies.

The diplomatic and lobbying efforts seem to have paid off. According to SK's senior presidential secretary for economic affairs Choi Sang-mok, Washington has officially approved an exemption for Samsung and SK Hynix chipmaking activities in China. Both corporations can continue using and upgrading their manufacturing plants in the country, for a seemingly indefinite amount of time.

SK Hynix and Samsung welcomed the decision, saying that it will contribute to the stabilization of supply chains for advanced technology products. As the world's economic outlook improves, demand for non-GPU chips is expected to grow again. A more stable supply chain would be instrumental in keeping prices in check.

The exemptions coming from Washington could also work in favor of the overall diplomatic efforts between the US and China. Chinese media have welcomed the decision, which was revealed on the same day that several US senators were visiting China to meet President Xi Jinping. The rumored meeting between Jinping and US President Joe Biden could soon turn into a reassuring reality.

Permalink to story.

https://www.techspot.com/news/100466-samsung-sk-hynix-can-continue-their-chipmaking-operations.html

 

[LetTheWookieWin]

The rumored meeting between Jinping and US President Joe Biden could soon turn into a reassuring reality.

There is nothing reassuring about seeing our government continually capitulate on national security issues and appeasing adversaries a la Neville Chamberlain. Weakness invites aggression, not peace.

 

[Uncle Al]

Another big mistake of this administration ..... their word is as solid as water .....

 

[Alfonso Maruccia]

There is nothing reassuring about seeing our government continually capitulate on national security issues and appeasing adversaries a la Neville Chamberlain. Weakness invites aggression, not peace.

It would be reassuring for the whole world outside the US, which I'm part of. Frankly I wasn't thinking about politics at all, but things seem to go downhill everywhere you look now. At the bare minimum, USA and China talking and not shooting themselves is reassuring, in all this chaos.

 

[ScottSoapbox]

So benevolent of the US government to allow foreign companies to do business in other foreign countries.

 

[LetTheWookieWin]

It would be reassuring for the whole world outside the US, which I'm part of. Frankly I wasn't thinking about politics at all, but things seem to go downhill everywhere you look now. At the bare minimum, USA and China talking and not shooting themselves is reassuring, in all this chaos.

I understand your sentiment, but much of the chaos we’re seeing is a direct consequence of the US projecting weakness on the world stage. Russia invading Ukraine on the heels of a botched US withdrawal from Afghanistan and Hamas attacking Israel after the US releases $6 billion in funds to Iran on the anniversary of 9/11 (a state that gave the green light on the attacks btw), are just a few egregious examples of a repeating pattern.

 

[Hexic]

So benevolent of the US government to allow foreign companies to do business in other foreign countries.

If only it were that simple.

 

[m3diapers]

I believe that the same richest owns and rules both countries

 

[Tantor]

If only it were that simple.

True. It's really hard to take the US/Western sanctions seriously. The West does far more damage to itself than to China or Russia.

It's almost as if the Western leaders work for China and Russia.

 

[Dimitrios]

I understand your sentiment, but much of the chaos we’re seeing is a direct consequence of the US projecting weakness on the world stage. Russia invading Ukraine on the heels of a botched US withdrawal from Afghanistan and Hamas attacking Israel after the US releases $6 billion in funds to Iran on the anniversary of 9/11 (a state that gave the green light on the attacks btw), are just a few egregious examples of a repeating pattern.

Also may I add Chinese police stations being found in America, illegally run bio labs being found in many Dem states in America, China "scanning" Hawaii months before the wildfires and other stuff but don't want to drag on.

 

[BuckarooBonzaii]

Capitalism takes priority over everything as China is a capitalist too. We are at the mercy of China as most of our goods come from China.

 

[Dimitrios]

Capitalism takes priority over everything as China is a capitalist too. We are at the mercy of China as most of our goods come from China.

Someone here made a great comment a while back. China is very sneaky and patient. They plan things 10 years from now while most folks in America focus strategies only short term. I know I said it wrong but you get the point.

 

[BuckarooBonzaii]

Someone here made a great comment a while back. China is very sneaky and patient. They plan things 10 years from now while most folks in America focus strategies only short term. I know I said it wrong but you get the point.

I agree with you. China said they want to be the world's economic leader and they just might get there.

 

[loki1944]

Another big mistake of this administration ..... their word is as solid as water .....

and repressive; I was smuggling Bibles there in 2000...very sad to see one set of kids slaving away in a sweat shopwhile another set of kids get to go to school in full view of the child slave labor. China's Commusism only survives thanks to the tax dollars of the free world.