SK hynix, Samsung, TSMC granted one-year reprieve from China chip restrictions
(2022/10/13)
- Reference: 1665660731
- News link: https://www.theregister.co.uk/2022/10/13/sk_hynix_china_chip_reprieve/
- Source link:
South Korean DRAM and flash memory chip maker SK hynix has been granted a one-year exemption from US Department of Commerce restrictions that ban exports of advanced chips and equipment to China.
SK hynix told The Register an official letter from the US Department of Commerce's Bureau of Industry and Security (BIS) assured the company, its suppliers and business partners it "is still authorized to engage in activities necessary to maintain current production of integrated circuits in China for one year without further licensing requirements."
"Our discussions with the Department of Commerce led to an approval to supply equipment and items needed for development and production of DRAM semiconductors in Chinese facilities without additional licensing requirements," said SK hynix.
[1]
The new restrictions, issued October 7, require a license to export to China or transfer domestically within the Middle Kingdom manufacturing equipment and support for DRAM chips below 18nm, NAND chips with more than 128 layers, or logic chips below 14nm.
[2]
[3]
[4]Taiwan Semiconductor Manufacturing Co. (TSMC) and [5]Samsung reportedly struck similar deals.
Samsung operates two chipmaking sites in China. For TSMC, it means the company will continue to ship equipment to a Nanjing manufacturing facility where it produces the more mature 22/28nm production nodes.
[6]Chinese city of Shenzhen offers free money to boost chip industry
[7]South Korea relieved US China chip ban won't bite, as Beijing fumes
[8]Biden cuts off China's Yangtze, 30 others from US chipmaking gear
[9]Europe gives SK Hynix the nod to gobble up Intel's NAND flash and solid-state drive biz
However, the ban means TSMC will not be able to provide AI processors or advanced graphics to Chinese customers, which remains a very small fragment of TSMC's overall business.
Intel said that it received an exemption to continue NAND memory chip operations at its factory in Dalian, China, which it [10]sold to SK hynix.
[11]
Intel said last December [12]it planned to continue to manufacture NAND wafers at the Dalian facility until its closure in March 2025.
China has condemned the restrictions. Over the weekend, Foreign Ministry spokesperson Mao Ning [13]said the bans "will hinder international sci-tech exchange and trade cooperation and deal a blow to global industrial and supply chains and world economic recovery."
The Register has asked TSMC, Samsung, and Intel to comment. ®
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[4] https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-gets-1-year-U.S.-license-for-China-chip-expansion-sources
[5] https://www.wsj.com/articles/samsung-gets-one-year-exemption-from-new-u-s-chip-restrictions-on-china-11665639994
[6] https://www.theregister.com/2022/10/12/chinese_city_of_shenzhen_chip_funds/
[7] https://www.theregister.com/2022/10/10/china_fumes_over_us_chip_ban/
[8] https://www.theregister.com/2022/10/07/biden_china_chips/
[9] https://www.theregister.com/2021/05/22/sk_hynix_intel_europe/
[10] https://www.theregister.com/2021/05/22/sk_hynix_intel_europe/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y0g2G6ae9HKD5k3cJAWWywAAABQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.intel.com/content/www/us/en/newsroom/news/intel-sells-ssd-business-dalian-facility-sk-hynix.html
[13] https://www.theregister.com/2022/10/10/china_fumes_over_us_chip_ban/
[14] https://whitepapers.theregister.com/
SK hynix told The Register an official letter from the US Department of Commerce's Bureau of Industry and Security (BIS) assured the company, its suppliers and business partners it "is still authorized to engage in activities necessary to maintain current production of integrated circuits in China for one year without further licensing requirements."
"Our discussions with the Department of Commerce led to an approval to supply equipment and items needed for development and production of DRAM semiconductors in Chinese facilities without additional licensing requirements," said SK hynix.
[1]
The new restrictions, issued October 7, require a license to export to China or transfer domestically within the Middle Kingdom manufacturing equipment and support for DRAM chips below 18nm, NAND chips with more than 128 layers, or logic chips below 14nm.
[2]
[3]
[4]Taiwan Semiconductor Manufacturing Co. (TSMC) and [5]Samsung reportedly struck similar deals.
Samsung operates two chipmaking sites in China. For TSMC, it means the company will continue to ship equipment to a Nanjing manufacturing facility where it produces the more mature 22/28nm production nodes.
[6]Chinese city of Shenzhen offers free money to boost chip industry
[7]South Korea relieved US China chip ban won't bite, as Beijing fumes
[8]Biden cuts off China's Yangtze, 30 others from US chipmaking gear
[9]Europe gives SK Hynix the nod to gobble up Intel's NAND flash and solid-state drive biz
However, the ban means TSMC will not be able to provide AI processors or advanced graphics to Chinese customers, which remains a very small fragment of TSMC's overall business.
Intel said that it received an exemption to continue NAND memory chip operations at its factory in Dalian, China, which it [10]sold to SK hynix.
[11]
Intel said last December [12]it planned to continue to manufacture NAND wafers at the Dalian facility until its closure in March 2025.
China has condemned the restrictions. Over the weekend, Foreign Ministry spokesperson Mao Ning [13]said the bans "will hinder international sci-tech exchange and trade cooperation and deal a blow to global industrial and supply chains and world economic recovery."
The Register has asked TSMC, Samsung, and Intel to comment. ®
Get our [14]Tech Resources
[1] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2Y0g2G6ae9HKD5k3cJAWWywAAABQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
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[4] https://asia.nikkei.com/Business/Tech/Semiconductors/TSMC-gets-1-year-U.S.-license-for-China-chip-expansion-sources
[5] https://www.wsj.com/articles/samsung-gets-one-year-exemption-from-new-u-s-chip-restrictions-on-china-11665639994
[6] https://www.theregister.com/2022/10/12/chinese_city_of_shenzhen_chip_funds/
[7] https://www.theregister.com/2022/10/10/china_fumes_over_us_chip_ban/
[8] https://www.theregister.com/2022/10/07/biden_china_chips/
[9] https://www.theregister.com/2021/05/22/sk_hynix_intel_europe/
[10] https://www.theregister.com/2021/05/22/sk_hynix_intel_europe/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44Y0g2G6ae9HKD5k3cJAWWywAAABQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[12] https://www.intel.com/content/www/us/en/newsroom/news/intel-sells-ssd-business-dalian-facility-sk-hynix.html
[13] https://www.theregister.com/2022/10/10/china_fumes_over_us_chip_ban/
[14] https://whitepapers.theregister.com/
Losing a ton of revenue for what?
martinusher
The US can't compensate these companies for a loss in revenue, there's just too much business. So I'd guess that this is more a face saving maneuver than a real concession -- these companies have probably run the numbers are realized that from a business perspective it doesn't make a whole lot of sense to cripple their business just to maintain the US market, the growth potential is in Asia.
We (the US) have issued another economic dictum today. Apparently our Treasury secretary has decided that we (and everyone else) is going to pay no more than $60 a barrel for Russian oil. I understand where she's coming from but somehow this sounds a bit detached from reality (unless its telling me something very subtle about the expected dollar / ruble exchange rate).
Not everyone wants to be the USA's foot rest
The American empire gives out its orders and extracts its tribute. America is failing badly, and when it fails it wants to take everyone down with it.