Samsung Electronics and SK Hynix, Will They Extend the Import of Chinese Semiconductor Equipment for Another Year?

English Media Financial Times Reports
"US Expresses Intent to Extend Regulatory Grace Period"
Expectations Rise Inside and Outside Domestic Industry

Samsung Electronics and SK Hynix may receive an additional one-year extension of the grace period regarding China's semiconductor equipment import regulations, according to foreign media reports. Industry insiders have evaluated that the extension of the grace period could become a reality.

On the 3rd (local time), the UK Financial Times (FT) reported, citing multiple sources, that the US government has expressed its intention to extend the grace period related to the import of semiconductor equipment into China for Samsung Electronics and SK Hynix by one year. It also explained that the US conveyed this through unofficial messages to individual companies.

FT analyzed that the US took this step "to delay China's acquisition of advanced semiconductors while not harming the economic interests of its allies." It also interpreted that this could help Korean companies maintain a technological edge over Chinese competitors.

SK Hynix factory in Wuxi, China / [Photo by SK Hynix Newsroom]

Since October last year, the US has restricted the export of advanced equipment to prevent the production of DRAM below 18 nanometers (nm; 1 nm = one billionth of a meter), NAND with 128 layers or more, and logic semiconductors below 14 nm within China. However, global companies with semiconductor factories in China, such as Samsung Electronics and SK Hynix, have been granted a one-year grace period from these regulations.

Industry insiders have assessed that an additional extension of the grace period is likely. Since the US is communicating with domestic companies not only through the Korean government but also via the Department of Commerce to gather opinions, there is an explanation that positive outcomes may emerge in the future.

In fact, companies are striving to extend the grace period for equipment export regulations. Kim Woo-hyun, Vice Chairman of SK Hynix, said during the first-quarter conference call last month, "We will do our best to extend the grace period for equipment export controls as much as possible to ensure stable business operations."

The Korean government stated that it cannot confirm the facts of this matter but said it is continuously discussing it with the US. An official from the Ministry of Trade, Industry and Energy said, "We have been closely consulting with the US regarding this issue," and "We will strive to resolve the matter smoothly."

Samsung Electronics has a NAND flash factory in Xi'an, China, and a packaging factory in Suzhou. SK Hynix has a DRAM factory in Wuxi and a packaging factory in Chongqing. There is also a NAND factory in Dalian, acquired from Intel's NAND flash division. Samsung Electronics produces about 40% of its NAND output in China, while SK Hynix produces about 50% of its DRAM output there.

This content was produced with the assistance of AI translation services.