US allows Samsung, SK Hynix to keep getting US tools in China

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WASHINGTON: The United States gave permission for South Korea’s SK Hynix and Samsung to keep receiving sure US chipmaking tools at their Chinese vegetation, the Commerce Department mentioned in an announcement on Friday.
The authorization allows them to proceed their Chinese chipmaking operations with out the headache of making use of for US licenses to get new tools, after new guidelines issued final October curbed Chinese chipmakers’ entry to the coveted tools.
The October 2022 guidelines restricted shipments of superior chips and chipmaking tools to China as a part of a US bid to sluggish China’s technological and army advances.
The US then scrambled to give overseas chipmakers particular authorizations to keep away from the unintended penalties of these guidelines hitting their manufacturing. Friday’s launch formalizes and extends these authorizations.

Taiwan Semiconductor Manufacturing Co (TSMC) mentioned in an announcement on Friday that it has been approved to proceed function in Nanjing and is in the method of making use of for a everlasting authorization for its operations in China, which it expects to obtain.
Samsung Electronics makes about 40% of its NAND flash chips at its plant in Xian, China, whereas SK Hynix makes about 40% of its DRAM chips in Wuxi and 20% of its NAND flash chips in Dalian.
The corporations collectively managed almost 70% of the worldwide DRAM market and 50% of the NAND flash market as of the tip of June, information from TrendForce confirmed.