Samsung, SK hynix stop selling used chipmaking equipment to China

Samsung Electronics chip plant in Xi'an, China [SAMSUNG ELECTRONICS]

Samsung Electronics and SK hynix, the world’s two largest memory chipmakers, have stopped selling used fabrication equipment to Chinese entities, the Financial Times reported Tuesday.

The move is an apparent capitulation to the United States' increased pressure on its allies to cut China off from key technology and machines.

“Samsung has been adhering to export regulations set forth by the U.S. government and does not facilitate or engage in business activities outlined within the guardrails,” Samsung Electronics said in a statement.

SK hynix declined to comment on the report.

The United States has not specifically dictated whether or not recipients of CHIPS Act funds should sell used chipmaking machines.

Its guidelines prohibit chipmakers that have received government subsidies from expanding production capacity in China by more than five percent over the next 10 years, measured by wafer input.

The U.S. government has been pressuring its allies, including the Netherlands, Germany, Korea and Japan to intensify their sanctions against the country in order to prevent it from accessing advanced chip manufacturing technology.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr