South Korea’s SK Hynix confirms it has acquired permission to acquire gear for chip manufacturing amenities in China.
The US authorities has allowed at the least two non-Chinese language chipmakers working in China to obtain restricted items and companies with out their suppliers searching for licenses, easing the burden of a brand new crackdown on the Chinese language chip sector, in accordance with trade sources.
The Biden administration had deliberate to spare overseas corporations working in China, equivalent to South Korean reminiscence chip makers SK Hynix and Samsung Electronics Co, from the brunt of latest restrictions, however the guidelines printed on Friday did not exempt such companies, the sources mentioned.
South Korea’s SK Hynix on Wednesday confirmed it had acquired authorisation from the US Division of Commerce to obtain chip gear wanted for its chip manufacturing amenities in China for one yr, with out searching for further licensing necessities.
As printed, the Biden administration’s guidelines require licenses earlier than US exports will be shipped to amenities with superior chip manufacturing in China, as a part of a US bid to sluggish Beijing’s technological and army advances.
The US had deliberate to grant licenses to provide non-Chinese language chip factories on a case-by-case foundation, whereas licenses to Chinese language chipmakers will face a presumption of denial.
As of midnight Tuesday, distributors additionally can’t assist, service and ship non-US provides to such China-based factories with out licenses if US corporations authorise, direct or request them.
However whether or not a license is authorised or not, the time it takes to get by way of the licensing course of might create delays in shipments and halt manufacturing.
A US Commerce Division spokesperson didn’t immediately reply to a request for touch upon the authorisations however mentioned the division hopes to get enter from stakeholders in regards to the rule and will contemplate adjustments.
A White Home spokesperson additionally didn’t reply to a request for remark.