South Korean chipmakers face balance between US, China for market domination – Times of India

Seoul: There is growing concern that SK Hynix’s plan to overhaul its Chinese factory with state-of-the-art chipmaking machines could be in jeopardy due to US protests.
Earlier this week, the US Trade Representative (USTR) Catherine Thai acknowledged that Washington, during a radio interview in Seoul, had opposed such efforts by the South Korean chip maker to bring advanced machines to its chip manufacturing plant in Wuxi, China.
“Where this technology ends up, there are legitimate concerns about risks to national security,” she said, implying that such high-tech equipment could be used to enhance Chinese military capabilities and other strategic industries. can go.
The technology in question is Dutch firm ASML Holding’s Extreme Ultraviolet (au andLithography is needed to make the ever smaller transistors in microchips faster, more powerful and more energy efficient, Yonhap news agency reports.
The precarious geopolitical situation in which SK hynix finds itself is in stark contrast to what has been announced recently. samsung Electronics, the world’s largest memory chip producer, to invest US$17 billion to strengthen its competitive edge in the global semiconductor industry.
Two days after Tai’s remarks, Samsung decided to build a new chip manufacturing plant in Taylor, Texas, to produce advanced chips based on EUV technology to be used in applications for mobile, 5G, high-performance computing and artificial intelligence. Plans unveiled.
Samsung has been working closely with ASML to create technological breakthroughs in semiconductor development since the early 2000s. It is also a close partner, an investor and a client of the Dutch firm.
In March last year, the South Korean tech giant became the first in the chip industry to successfully adopt EUV technology in DRAM production.
SK hynix, the world’s second largest memory chip maker after Samsung, is late in the application of EUV technology.
However, facing unforeseen challenges, SK hynix earlier this year signed a five-year contract with ASML to purchase around 20 more EUV machines, a major investment to upgrade its facilities and enhance competitiveness .
The SK hynix is ​​estimated to have two or three EUV machines, far less than the 17-19 machines owned by Samsung and the nearly 40 machines owned by Taiwan Semiconductor Manufacturing Company (TSMC).
A company spokesperson told Yonhap News Agency on Friday that there had been no discussion or immediate plans to bring EUV equipment to China, and that it was still premature to discuss the US sanctions. Did, if any, have plans to overhaul it. Its sugar plant.

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