South Korea: SK Hynix Wuxi factory expansion problem:
-EUV introduction plan problem at Wuxi factory in China-
-US government is concerned-
[Seoul, November 18, Reuters]
Korean semiconductor giant
SK Hynix
To manufacture semiconductors more efficiently
The future of the plan to renovate the equipment in China,
It is opaque.
“Because the US government does not want advanced manufacturing equipment to be used in China,” he said.
SK Hynix
Renovate mass production facility in Wuxi, China.
“A plan to introduce ASML EUV lithography manufacturing equipment”.
Three people familiar with the situation said.
U.S. administration officials:
“When cutting-edge equipment is used in China, it will be used to strengthen China’s military power,” he said.
Regarding “whether to allow SK Hynix to introduce EUV in China”
High-ranking US administration officials declined to make specific comments.
SK Hynix
Wuxi factory
Manufactures half of DRAM chips (15% of the world).
Demand is expected to grow by 19% in 2021 alone.
Changes in manufacturing plans will have a significant impact on the global semiconductor market.
Reuters
https://jp.reuters.com/article/supply-chain-sk-hynix-china-idJPKBN2I30BU
U.S.-China Confrontation May Hinder SK Hynix from Upgrading China Plant
The ongoing U.S.-China hegemony war
is threatening to shatter SK Hynix’s plan to introduce extreme ultraviolet (EUV) lithography to its semiconductor plant in China.
SK Hynix recently mapped out a plan to upgrade its DRAM plant in Wuxi, Jiangsu Province
by introducing EUV lithography equipment from the Netherlands, but failed due to the U.S. government’s control, according to a Reuters report on Nov. 18.
EUV lithography equipment
is mainly used for sub-5nm production lines.SK Hynix introduced the equipment
to its DRAM plant in Icheon, Gyeonggi Province this year for the first time.The U.S. government reportedly blocked SK Hynix
from bringing the equipment into China, claiming that it might help China build up its military power.
Analysts say that
this action was taken based on the executive orders signed by former U.S. President Donald Trump to regulate exports of strategic materials and products to China.
The regulations included the National Defense Authorization Act (NDAA).
In particular,
this case is notable as the subject of equipment use is not a Chinese company but a third-country company that has entered China.Industry insiders forecast that
the U.S. government’s decision will put considerable pressure on companies doing business in China.
“If a Korean chipmaker is not allowed to upgrade its plant in China, it may have no choice but to give up the factory in the worst-case scenario,”
said an industry analyst.
– Businesskorea
http://www.businesskorea.co.kr/news/articleView.html?idxno=81756
SK Hynix halts Chinese chip plant upgrade over U.S. restrictions – Nikkei Asia