Even though it is exposed to heavy embargo conditions by the USA, China is an indispensable part of the technology world. Due to its cheap and efficient production power, numerous technology giants such as Apple and Samsung have deployed their production facilities here. Now he’s having a hard time pulling back.US coup in South Korea
South Korea is the undisputed leader when it comes to memory production. Samsung and SK Hynix are the two biggest players in South Korea, which has a total market value of 70 billion dollars. These companies, which are the two biggest players in the world, have key facilities in China.
Samsung has production facilities in two cities and R&D centers in three cities. Especially, NAND production in Xi’an city has 42.5 percent of total production and 15.3 percent of global capacity. Samsung has 7 billion dollars of founding capital here.
SK Hynix also has production facilities in 3 cities. Facilities in the city of Wuxi own 40 percent of DRAM production. Apart from these, many South Korean chip designers have facilities in China. Hong Kong and China export around 60 percent of chips in total.
According to the information received, the US Department of Commerce wants to put a limit on South Korean companies that make production in China. Thus, the chip production in China will decrease to lower amounts and the revenues of the Chinese plants will decrease. Information sharing will also decrease. On the other hand, South Korean companies will search for ways to produce in different countries.
However, limiting chip production means dynamite South Korean exports. Because South Korean companies were frequently exempted from the embargoes imposed by the USA on China. Thus, there was no problem in production. The Minister of Industry of South Korea stated that for now, they have not received any request from the USA regarding the production limitation.
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