The industry pays attention to the ‘public technology control notice’
Samsung NAND, SK DRAM hit prospects
Industry “US target is Chinese semiconductor control”
Most of the high-tech products are domestically produced
China’s largest market… government, both countries
The domestic semiconductor industry, which fell into a recession due to a sharp drop in memory demand following the global economic recession last year, is again agitated by the US signal to contain China. Following the U.S. administration’s ban on exports of semiconductor technology and equipment to China in October of last year to curb China’s rise in the semiconductor industry, it is referring to the possibility of additional regulations targeting Korean companies with factories in China.
According to industry sources on the 26th, Alan Esteves, undersecretary for industrial security at the U.S. Department of Commerce, said at the Korea-U.S. Economic Security Forum held in Washington DC on the 23rd (local time) regarding Samsung Electronics and SK Hynix’s factories in China, “The level of semiconductors that companies can produce is high.” It is highly likely to put a cap on level.” Vice Minister Esteves’ remarks came in the process of answering a question about additional measures after the end of the one-year grace period for export controls on semiconductors to China previously applied by the US government to Samsung and SK Hynix.
This is interpreted as meaning that the two companies will block investment in Chinese factories. Samsung Electronics is producing 128-layer NAND flash in Xian, China, and SK Hynix is producing DRAM in the late 10-nanometer (nm · 1 nanometer is 1 billionth of a meter) factory in Wuxi and 96-layer 144-layer NAND flash in Dalian. .
The process that the two companies applied to their Chinese factories is far from the ‘high-tech process’ that the US is paying attention to. In the case of NAND flash, Samsung Electronics and SK Hynix produce all products with more than 200 layers in Korea, which far exceed the US regulatory standards (128 layers or more).
In this regard, Samsung Electronics and SK Hynix were wary of an extended interpretation, saying, “It is not an official announcement from the Ministry of Commerce that contains specific details, and the vice minister’s message is also seen as directed toward China, not semiconductor companies.” An industry insider said, “The purpose of the US is not to harass allied companies or disrupt supply chains, but to contain China’s semiconductor growth. I hope you do,” he added.
Companies’ investment in facilities in China is also being pushed to the rear. This is because investment in the United States is emerging as a more urgent task at a time when domestic investment is not easy due to poor performance last year.
The United States provides production subsidies for 5 years from a budget of a total of 39 billion dollars (approximately 51.4 trillion won) to companies establishing new semiconductor factories in the country, and R&D subsidies (total of 13.2 billion dollars) to companies establishing R&D facilities. ) gives Subsidy applications will be accepted starting on the 28th. Companies receiving subsidies must sign an agreement with the Ministry of Commerce not to expand their semiconductor production capacity in countries of concern, such as China, for the next 10 years.
Samsung Electronics, which is building a second foundry (consignment production) plant in Taylor, Texas, is expected to apply for a subsidy. SK Hynix announced plans to establish a semiconductor R&D center at the level of SK Group in Silicon Valley, but no concrete implementation plan has been released yet.
Reporter Park Seong-guk
