Samsung and SK Hynix suffer significant blow to their chipmaking activities in China

[Alfonso Maruccia]

The big picture: Samsung and SK Hynix are two powerhouses in the global semiconductor industry. Although initially spared from the geopolitical tensions between the US and China, the South Korean companies are now set to face the negative consequences of Washington's tariff-driven "diplomacy."

US authorities have revoked exemptions that previously allowed Samsung and SK Hynix to purchase chip manufacturing equipment in the US and transport it to China. The two South Korean companies, which control a significant share of the global memory chip market, will now need to reconsider their investments.

The previous US administration had permitted them to export chip-making equipment from US companies such as KLA, Lam Research, and Applied Materials. Without these exemptions, the firms would be unable to use the devices to expand or upgrade their manufacturing capabilities in China.

With the exemptions revoked, the South Korean corporations must now apply for licenses from federal authorities like any other company. The revocation will take effect in 120 days. The Department of Commerce confirmed that it plans to issue licenses allowing companies to continue operating their existing Chinese plants, but will not permit further development or upgrades of these facilities.

Stock market valuations for Samsung and SK Hynix fell sharply on Monday after US authorities confirmed they were revoking the Biden-era export exemptions. SK Hynix was hit the hardest, dropping 4.8 percent, as 30 – 40 percent of its DRAM and NAND Flash chips are manufactured in Chinese facilities. Samsung saw a three percent decline in market value, with only a third of its NAND production taking place in China.

The export exemptions were rescinded shortly after President Donald Trump met with Lee Jae-myung, the newly elected president of South Korea. The negotiations were inconclusive, though the two leaders agreed to meet again in the future.

Analysts are assessing the potential impact of the policy change. Ryu Young-ho, a senior analyst at NH Investment & Securities, noted that Samsung and SK Hynix are now likely to focus on strengthening their domestic manufacturing capabilities. Their Chinese plants will remain operational, primarily to maintain a presence in the country.

The companies may also expand partnerships with China-based equipment manufacturers. Further complications could arise if Trump follows through on his threat of a 100 percent tariff on semiconductor imports. While Samsung and SK Hynix might be spared due to their planned investments in the US, the global chip supply chain could still face significant disruption.

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Samsung and SK Hynix suffer significant blow to their chipmaking activities in China

 

[Megalomaniac]

Whatever handicaps America has placed on China, you can be sure within 5 years they'll overcome them and blow past them.

China will never allow the racist policies of America to hold it down.

 

[toooooot]

Whatever handicaps America has placed on China, you can be sure within 5 years they'll overcome them and blow past them.

China will never allow the racist policies of America to hold it down.

Compared to Chinese policies, American policies are not racist, they are in fact angelic.

 

[Squid Surprise]

Whatever handicaps America has placed on China, you can be sure within 5 years they'll overcome them and blow past them.

China will never allow the racist policies of America to hold it down.

I believe this is a class “pot calling the kettle black”….

Saying that, it must be really frustrating as an investor these days, knowing that if Trump is in a bad mood, he can erase your net worth with a random tariff…

 

[candle86]

Whatever handicaps America has placed on China, you can be sure within 5 years they'll overcome them and blow past them.

China will never allow the racist policies of America to hold it down.

China is going back on its leash, it should have never been allowed off in the first place. The biggest mistake we made as a world was not shifting our military forces into China in 46/47 to crush the PRC be wise we assumed the ROC would win, sadly it's to late to restore the legitimate government of China over West Taiwan aka China mainland

 

[Squid Surprise]

China is going back on its leash, it should have never been allowed off in the first place. The biggest mistake we made as a world was not shifting our military forces into China in 46/47 to crush the PRC be wise we assumed the ROC would win, sadly it's to late to restore the legitimate government of China over West Taiwan aka China mainland

You do realize they’re not a dog… they have over a billion people… and the ROC was a fascist dictatorship - there’s a reason the Chinese chose Mao…

Yes, they’re a terrible regime but - becoming fascist doesn’t really cure the problem.

 

[Mr Majestyk]

Compared to Chinese policies, American policies are not racist, they are in fact angelic.

ROLMAO

Oh that's pure gold.

One puts Ughurs in camps, the other puts South/Central Americans in camps.

 

[Squid Surprise]

ROLMAO

Oh that's pure gold.

One puts Ughurs in camps, the other puts South/Central Americans in camps.

lol… there’s no comparison on how China treats their minorities vs how the US does… however badly the US treats them (and they DO treat them badly), the Chinese are VASTLY worse.

 

[ferrellsl]

lol… there’s no comparison on how China treats their minorities vs how the US does… however badly the US treats them (and they DO treat them badly), the Chinese are VASTLY worse.

Yeah, they treat minorities so badly in the US that they rise to be Presidents like Obama and Vice Presidents like Kamala Harris, and billionaire media moguls, like Oprah.....and millionaire quarterbacks, basketball stars (LeBron James, Michael Jordan, etc.), and baseball players. And let's not forget the pop stars like Beyonce, Jennifer Lopez, et. al. So again, tell us how bad the US treats minorities. We need to hear it again.

 

[dangh]

Yeah, they treat minorities so badly in the US that they rise to be Presidents like Obama and Vice Presidents like Kamala Harris, and billionaire media moguls, like Oprah.....and millionaire quarterbacks, basketball stars (LeBron James, Michael Jordan, etc.), and baseball players. And let's not forget the pop stars like Beyonce, Jennifer Lopez, et. al. So again, tell us how bad the US treats minorities. We need to hear it again.

Masterwork cherry picking. Look at your prisons.

 

[ferrellsl]

Masterwork cherry picking. Look at your prisons.

You call being elected to President of the USA twice "cherry picking"? The only picking going on is you and your nose.

 

[candle86]

Masterwork cherry picking. Look at your prisons.

Odd, if you commit a crime you go to prison, look at actual crime data, it turns out most of the violent crime is done by a single minority in this country, thats not racism, thats just the culture.

 

[Squid Surprise]

Odd, if you commit a crime you go to prison, look at actual crime data, it turns out most of the violent crime is done by a single minority in this country, thats not racism, thats just the culture.

Wow… impressed with your blinders… maybe ask HOW that culture happened? I don’t recall your white majority having been enslaved…

Yeah, they treat minorities so badly in the US that they rise to be Presidents like Obama and Vice Presidents like Kamala Harris, and billionaire media moguls, like Oprah.....and millionaire quarterbacks, basketball stars (LeBron James, Michael Jordan, etc.), and baseball players. And let's not forget the pop stars like Beyonce, Jennifer Lopez, et. al. So again, tell us how bad the US treats minorities. We need to hear it again.

My original argument was that the US treats them BETTER than China…. You won’t see any of that there.

But just because a very small percentage are allowed to thrive does not mean they are treated fairly.

I suspect if you asked someone of Cherokee blood if they think they’re getting a fair shake in your country you might get a different answer.

 

[toooooot]

ROLMAO

Oh that's pure gold.

One puts Ughurs in camps, the other puts South/Central Americans in camps.

Uhgurs do not illegally cross the border to live in the best country on earth, communist China. Nobody would put south Americans into camps if they came in legally. They put a huge strain on the system, that is very ordinary people many of who never enjoyed a luxury life. An unstoppable influx of illegal immigrants does not make a country better, it makes it worse for everybody except those individuals who benefit of cheap labor.

 

[ferrellsl]

Odd, if you commit a crime you go to prison, look at actual crime data, it turns out most of the violent crime is done by a single minority in this country, thats not racism, thats just the culture.

Watch out. Some dude who flunked math will accuse you of cherry picking your data.

 

[ferrellsl]

I suspect if you asked someone of Cherokee blood if they think they’re getting a fair shake in your country you might get a different answer.

Wow, you're one of "those" types who sees racism everywhere you look. You do realize that the indigenous tribes in the USA are among the wealthiest groups of people in the US, right? The Cherokee Nation alone has 10 casinos across northeast Oklahoma, including Hard Rock Hotel & Casino Tulsa. Not to mention the casinos they own in North Carolina and Tennessee. I live in Arizona and there are 28 casinos owned by 16 different federally recognized tribes. The Arizona Department of Gaming notes there are 26 Class III (full-scale) casinos and two Class II (limited gaming) facilities. So stop using false strawman narratives as an argument. Here's another tidbit for you: There are currently 474 American Indian gaming operations owned by 243 of the 566 federally recognized American Indian Tribes in 29 states, whose annual revenue exceeds 32 USD billion and represents 43% of all casino-based gambling revenue in the United States (500 Nations, 2019)

 

[Squid Surprise]

Wow, you're one of "those" types who sees racism everywhere you look. You do realize that the indigenous tribes in the USA are among the wealthiest groups of people in the US, right? The Cherokee Nation alone has 10 casinos across northeast Oklahoma, including Hard Rock Hotel & Casino Tulsa. Not to mention the casinos they own in North Carolina and Tennessee. I live in Arizona and there are 28 casinos owned by 16 different federally recognized tribes. The Arizona Department of Gaming notes there are 26 Class III (full-scale) casinos and two Class II (limited gaming) facilities. So stop using false strawman narratives as an argument. Here's another tidbit for you: There are currently 474 American Indian gaming operations owned by 243 of the 566 federally recognized American Indian Tribes in 29 states, whose annual revenue exceeds 32 USD billion and represents 43% of all casino-based gambling revenue in the United States (500 Nations, 2019)

Again… throwing money at racism doesn’t make it go away…

The native people in your country aren’t TREATED well by Americans - giving them a few casinos doesn’t change this… just makes the bigwigs less likely to complain…

Not to say they’re treated much better in my country (Canada) either… and they’re certainly treated FAR better than any minorities in China.

 

[ferrellsl]

Again… throwing money at racism doesn’t make it go away…

The native people in your country aren’t TREATED well by Americans - giving them a few casinos doesn’t change this… just makes the bigwigs less likely to complain…

Not to say they’re treated much better in my country (Canada) either… and they’re certainly treated FAR better than any minorities in China.

I never stated nor implied that it did make racism go away. But you keep claiming that minorities in the US are treated soooo badly and you're wrong, and I've pointed that out. Then you keep moving the goal post to a different minority group to support your argument, and I keep providing hard data which refutes your comments, but you just keep stating leftist talking points whenever there's any hard data. White folks and bigwigs didn't "give the indigenous tribes" a "few" casinos (your very words). The tribes built 474 casinos themselves....that's NOT a few, so stop belittling their accomplishments. They've built and own nearly half (43%) of the casino market revenue in the US but make up less than 3% of the US population.......yeah, they're so poorly treated and downtrodden. And then you double down and insist that minorities aren't able to build wealth on their own unless whitey lets them. That shows that you're the REAL racist/bigot in this thread because you believe that the tribes can't build their own wealth unless whitey lets them or helps them. The tribes are more than capable of taking care of themselves and building their own wealth without whitey and here in AZ they're treated just like everybody else. I even have an Apache family who lives next door and they're amazing people and according to their own words have never been mistreated by whitey. But as I said earlier, you're one of "those" people who sees racism everywhere because you're living in some sort of twisted fantasy world where you're a rebel looking for a cause.

 

[mailpup]

Back on topic please. Thank you.

 

[Megalomaniac]

ROLMAO

Oh that's pure gold.

One puts Ughurs in camps, the other puts South/Central Americans in camps.

Oh no... America sent them to foreign prisons - some in Africa and others in other places of South America. American racist policies are only killing the dollar and setting America back.