In the US Congress, an argument was made that “the delay in importing semiconductor equipment (for Korean companies, etc.) by the US administration should not be used to fill the vacuum in the Chinese market for Micron.” If Samsung Electronics and SK Hynix expand their sales in China while China has partially banned Micron, the largest memory semiconductor company in the US, from selling in China, the suspension of US semiconductor equipment import restrictions on these companies should be withdrawn. It is the first time that the United States has openly asked South Korea to refrain from expanding memory semiconductor sales to China.
Mike Gallagher (Republican-Wisconsin), chairman of the U.S. House Special Committee on Strategic Competition between the U.S. and China, told Reuters on the 23rd (local time), “The Commerce Department has argued that the U.S. export licenses granted to foreign memory semiconductor companies operating factories in China are filling the Micron void. We need to ensure that it is not used for anything,” he said. “As our ally South Korea experienced exactly the same economic coercion directly from the Chinese Communist Party (with Micron), we must prevent (Micron) from filling the void,” he argued.
If Samsung Electronics and SK Hynix, which are operating memory semiconductor factories in China, increase memory semiconductor sales in China to fill the void created by the ban on Micron sales, it is interpreted as meaning that the US Department of Commerce should withdraw the suspension of import and export restrictions on semiconductor equipment. In October of last year, the Ministry of Commerce announced regulations on importing high-tech semiconductor equipment to China, and suspended Samsung Electronics and SK Hynix for one year. However, the moratorium may be revoked pursuant to Department of Commerce regulations.
US Senate Democratic Party leader Chuck Schumer (New York) also said, “We are in contact with the business world as well as allies and partner countries to resolve the Chinese government’s regulation on Micron.” We will make it clear to the Chinese government that this is unacceptable.”
Analysts say that South Korea has been forced to choose between US pressure and the possibility of China’s economic retaliation amid intensifying competition for high-tech semiconductors between the US and China.
China’s Foreign Minister Qin Gang met with the Dutch deputy prime minister and foreign minister on the same day and warned the Netherlands not to join the U.S. semiconductor equipment regulation.
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Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.