U.S. Revokes Chip Equipment Exemptions: Impact on Korean Giants
The U.S. has revoked exemptions allowing Samsung and SK Hynix to use American semiconductor equipment in China, impacting their operations. The companies must now seek licenses, potentially hindering operations and affecting the global supply chain. This move may benefit Chinese firms and U.S. competitor Micron, amid ongoing trade tensions.
The United States government has rescinded authorizations that enabled chipmakers Samsung and SK Hynix to procure American semiconductor manufacturing equipment for use in China. The U.S. Commerce Department's decision aims to tighten control over the transfer of sensitive technology, previously relaxed under exemptions granted in 2022.
Although Samsung and SK Hynix can still apply for licenses to maintain current facilities, the delay in processing such applications may disrupt their production. The South Korean government is in talks with the U.S. to mitigate these impacts, emphasizing the importance of stable operations for the global supply chain.
This policy shift is predicted to lower sales from American equipment manufacturers KLA Corp, Lam Research, and Applied Materials, whose shares saw a significant drop. Meanwhile, U.S. competitor Micron and Chinese firms may gain from any operational gap left by Korean companies, challenging market dynamics in the semiconductor sector.
(With inputs from agencies.)
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