The U.S. gave permission to SK Hynix and Samsung to keep receiving certain American chipmaking tools at their Chinese plants, the U.S. Commerce Department announced in an October 13 statement.
The authorization allows the companies to continue using their China-based chipmaking operations without having to apply for licenses with the U.S. to receive new equipment, according to Reuters.
Taiwan Semiconductor Manufacturing Company (TSMC) said October 13 that it was given permission to continue operating in Nanjing. The organization is currently in the process of applying for permanent authorization for its Chinese operations.
Previously, a new rule was enacted by the U.S. that curbed Chinese chipmakers’ access to these types of products in October 2022. The October 2022 rule barred the shipment of advanced chips and chipmaking equipment to China as the U.S. attempts to slow down China’s military and technological advancements.
After the 2022 rule was passed, the U.S. rushed to give select foreign chipmakers special authorizations in order to help them avoid production slowdowns. However, the latest permissions formalize and extend those authorizations.
Samsung Electronics produces roughly 40% of the company’s NAND flash memory chips at its factory in Xian China.
SK Hynix makes about 40% of its dynamic random-access memory (DRAM) chips at its Wuxi facility. Another 20% of SK Hynix’s NAND flash chips are made in Dalian.
The two companies make up almost 70% of the world’s DRAM market combined as well as 50% of the NAND flash market as of the end of June 2023.
