JVTech News The United States turns a blind eye to South Korea: Samsung and SK Hynix can continue to send lithographic equipment to China
Published on 02/10/2023 at 22:30
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As the United States escalates its tech war against China, it appears an exception is being made for some South Korean companies like Samsung and SK Hynix. According to recent reports, these tech giants have received approval from the United States to continue exporting lithography equipment to China. A rather astonishing privilege.
The geopolitics of tech: A complex chessboard
The technology field has become one of the most important battlegrounds in current geopolitical relations. The United States, for example, is doing everything possible to prevent Chinese technological advances, especially in the semiconductor sector. The heart of this battle: very fine lithography equipment, sophisticated machines essential to the production of cutting-edge electronic chips. This equipment is largely produced by ASMLa Dutch company, but they also contain technological elements of American origin.
China is not left out. The Chinese government is investing heavily in its semiconductor industry, awarding huge subsidies to companies like SMIC and Hua Hong Semiconductor. But China also hosts factories of foreign companies, many of them South Korean. These companies thus find themselves caught in a geopolitical whirlwind made up of sanctions, negotiations and export restrictions.
Samsung and SK Hynix: Between a sickle and a hard place
Samsung and SK Hynix, two South Korean giants in the sector, are particularly concerned by this political war. Both have major production facilities in China, where they use high-end lithography equipment to manufacture semiconductors. To maintain their competitiveness, they need to regularly update this equipment. This requires authorization from the U.S. Department of Commerce because these machines incorporate U.S. technologies and patents.
What is surprising is that despite the tensions between the United States and China, Samsung and SK Hynix seem to have reached an agreement with the American administration. Their export license is about to expire, but everything indicates that it will be renewed. South Korea’s Yonhap news agency even suggested that this authorization could be extended indefinitely. The real suspense lies in the type of machines these companies will be allowed to export.
The export license for Samsung and SK Hynix has far-reaching implications. Samsung is a major player in the production of NAND Flash chips, with a factory in Xian, China. SK Hynix, for its part, produces DRAM integrated circuits in Wuxi (also in China) and NAND Flash in Dalian, east of Beijing. Renewing their license could significantly strengthen their position in the global semiconductor market, a sector where every little innovation counts for a lot.
But this situation also raises questions about the United States’ overall strategy towards China. On the one hand, they seek to limit China’s access to advanced technologies, but on the other hand, they appear willing to make exceptions for close allies like South Korea. This creates a certain paradox in the way the United States manages its technology and trade policy.
The Samsung and SK Hynix affair highlights the subtleties and contradictions of US technology policy. The decisions could impact the entire semiconductor industry, US-China relations and perhaps even the overall dynamics of technology distribution. China is thus taking an increasingly important place in fine lithography, with indirect help from the United States.
2023-10-02 20:30:02
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