SK hynix gets waiver from U.S. rules on chip tech in China

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SK hynix gets waiver from U.S. rules on chip tech in China

Published: 12 Oct. 2022, 14:57 Updated: 12 Oct. 2022, 15:06

Engineers work at a SK hynix production line. [SK HYNIX]

SK hynix has received a one-year waiver on U.S. restrictions related to the importing of certain semiconductor-related technologies into China.

“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,” the company said in a statement Wednesday.

On Friday, the United States issued new rules that would make it nearly impossible for companies to supply their factories in China with technologies for the making of DRAM memory chips rated 18 nanometer or less and NAND flash memory chips with 128 layers or more.

The United States argues that advanced chips can be used by China in weapons and in the making of weapons and can help China's communications during wartime. In the rules, the Commerce Department noted that it will review exports to China by multinationals on a case-by-case basis.

Samsung Electronics declined to comment on whether it has received a similar exemption, though local media have reported that the company, Korea's largest, has also been granted dispensation.

The Samsung Electronics plant in Xi'an, China, produces about 40 percent of the company's NAND flash output and 10 percent of the world's total. The SK hynix plant in Wuxi, China, makes half the company's DRAMs.

Samsung Electronics rose 0.72 percent in trading Wednesday and SK hynix 1.88 percent.

BY PARK EUN-JEE, LEE HO-JEONG [park.eunjee@joongang.co.kr]