Samsung and SK Hynix Halt Sales of Used Semiconductor Equipment... US Awareness

Domestic semiconductor companies Samsung Electronics and SK Hynix have reportedly stopped the global sale of used semiconductor manufacturing equipment. This decision is analyzed to be due to concerns over U.S. export controls against China and Western sanctions on Russia.

On the 11th (local time), major foreign media reported that Samsung Electronics and SK Hynix are not putting used semiconductor machines on the market but are storing them in warehouses. This is said to have started in 2022 when the U.S. began blocking China's access to advanced semiconductors and manufacturing equipment.

An industry insider said, “It seems they are worried that if the equipment falls into other hands, it could cause problems in their relationship with the U.S. government.” However, since the value of thousands of used machines exceeds millions of dollars, it is evaluated that they chose storage over disposal.

So far, domestic semiconductor companies have packaged outdated equipment used for previous-generation chips in home appliances and automobiles and sold them to dealers. The largest demand in this market comes from China. Chinese companies are known to have acquired the capability to purchase and modify semiconductor equipment no longer needed by Korean semiconductor companies to produce not only low-quality semiconductors but also advanced semiconductors.

Last year, Chinese company Huawei attracted global attention by partnering with SMIC, the country's largest foundry semiconductor manufacturer, successfully producing semiconductors using the 7nm (nanometer, one billionth of a meter) advanced process. Despite the supply chain conflicts between the U.S., South Korea, and China, China was evaluated to have made a significant leap in semiconductor manufacturing technology. Since then, the U.S. government has been openly pressuring European and Asian allies to strictly control semiconductor technology exports to China.

Gregory Allen, director at the Center for Strategic and International Studies (CSIS), analyzed, “South Korea knows that if equipment from Samsung or SK Hynix ends up in sanctioned Chinese fab (semiconductor manufacturing facility) companies like SMIC or YMTC, it would not be good for U.S.-South Korea relations.”

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