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Samsung Technology If the shared information is accurate, this would signify a completely new step in policies aimed at preventing China from obtaining advanced chip technology for military purposes. Previously, the US has penalized China's largest chip manufacturer, Semiconductor Manufacturing International Corporation (SMIC), and prohibited Taiwan Semiconductor Manufacturing Company (TSMC) from supplying chips below 7nm to China.
Last year, the US Department of Commerce also introduced a series of new regulations banning US citizens and individuals from developing or manufacturing chips at facilities located in China without authorization. This will require licenses for shipping devices with chips smaller than 16nm and 14nm. Additionally, Samsung and SK Hynix are concerned about their manufacturing activities in the densely populated country.
Although the US is just one of the leading chip-producing nations globally, it boasts a plethora of companies that excel in transporting the best manufacturing and chip design equipment available today. Furthermore, Samsung and SK Hynix also have several factories located in Wuzhi, Zhongshan, Tai'an, and Xinyi.
With the new regulations introduced in October, both Samsung and SK Hynix may apply for temporary exemptions to continue operations in China. However, according to Alan Esteve, Deputy Trade Minister responsible for industry and security, the US's objective is to impede the development of chip manufacturing technology in China.
Based on Mr. Estevez's remarks in Washington, the new regulations will not harm the companies of allied nations but will strive to prevent expansion and influence from China.
Moreover, China remains a lucrative market for leading tech companies such as Apple and Qualcomm. This stems from its large population and the influence of companies in the region. According to Apple's Q4 2022 financial report, the company generated $24 billion in revenue out of a total of $117 billion.
Furthermore, Samsung and SK Hynix currently dominate over half of the global NAND memory market. Samsung holds a 33% market share, while SK Hynix holds 20% as of June 2022, according to Trendforce data.
