Ongoing tensions between the US and China are likely to harm South Korea's semiconductor industry. US limitations on chip production in China, Samsung Electronics And SK Hynix has become a source of concern for companies such as
US wants to restrict chip production in China
South Korea is the world leader in memory chip manufacturing with a market value of $70 billion. A significant part of this value is provided by Samsung and SK Hynix. Both companies have invested billions of dollars in China, making it an important market for semiconductor manufacturing.
The US is threatening to limit chip production in China. He says that Korean manufacturers should withdraw from China, otherwise they will not be able to buy products from US companies. China and Hong Kong account for about 60 percent of South Korea's semiconductor exports. That's why companies like Samsung and SK Hynix are in trouble.
This move will affect the operations of Samsung and SK Hynix, which have significant investments in China. For example, Samsung Electronics' NAND And DRAMA It has two main production facilities. Its factory in China accounts for 42 percent of its total NAND production.
The Minister of Industry of South Korea stated that until now, there has been no discussion between South Korea and the United States on imposing limits on technology and production levels. However, both countries said they would not allow the sanctions to affect Korean companies' investments in China.
Last year, both Samsung Electronics and SK Hynix received a one-year suspension from US export restrictions. The South Korean government plans to start talks with the United States to extend this delay.
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