Samsung and SK Hynix could be spared harshest chip export restrictions in US-China tech war

The Biden administration is planning to spare the South Korean companies from the brunt of new restrictions with case-by-case reviews of equipment licences

The US is only seeking to target Chinese companies, a source told Reuters, but South Korea’s largest chip makers fear bickering with regulators

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Samsung Electronics’ 8GB double-data-rate (DDR) 4 memory modules are arranged for a photograph in Seoul on July 9, 2019. Photo: Bloomberg

Published: 11:56am, 7 Oct 2022

The Biden administration plans to spare SK Hynix and Samsung from the brunt of new restrictions on memory chip makers in China aimed at thwarting Beijing’s technological ambitions and blocking its military advances, sources said.

The Commerce Department, which plans to release new curbs on exports of technology to China this week, will likely deny requests by US suppliers to send equipment to Chinese firms like Yangtze Memory Technologies Co Ltd (YMTC) and ChangXin Memory Technologies Inc (CXMT) if they are making advanced DRAM or flash memory chips, the sources said.

However, license requests to sell equipment to foreign companies making advanced memory chips in China will be reviewed on a case-by-case basis, sources said, potentially allowing for them to receive the equipment.

“The goal is not to hurt non-indigenous companies,” one of the people briefed on the matter said.

The White House and Commerce Department declined to comment. SK Hynix Inc, Samsung Electronics Co Ltd, YMTC, and CXMT did not respond to requests for comment.