The one-year permit Samsung and SK Hynix have obtained from the U.S. Department of Commerce to ship chipset technologies to China might not make a difference. Samsung and SK Hynix are still on the fence regarding their investments in China, and they might hold off from spending too many resources over the coming 12 months.
The USA has restricted advanced chipset technology exports to China but gave Samsung a one-year permit, allowing it to export equipment to its chipset factories in China without hindrance. However, according to new reports, both Samsung and SK Hynix view this one-year permit as more of a deadline than a helping hand.
As a result, Samsung is not very eager to export advanced factory equipment to China on the basis of this temporary agreement. The company fears that things could change drastically after one year. Not knowing where the situation could lead next, the company views investments in its chip factories in China as a risk. Both Samsung and SK Hynix have reportedly launched campaigns to assess these business risks and hopefully come up with a solution. (via Nikkei Asia)
China continues to accommodate a large portion of Samsung's global chipset business. The company manufactures more than 40% of its NAND flash memory chips in China. The same goes for SK Hynix.
Recent reports say that the Korea Ministry of Trade had negotiated with the U.S. Department of Commerce on behalf of the two chipset giants. Samsung didn't comment on the matter, but according to an SK Hynix spokesperson cited by the local media, “the [one-year] license can be extended, or we can be subject to a case-by-case review.”
