SK hynix exempted from US export controls for 1 year

Seoul, Oct 12

SK hynix, the world's second-largest memory chip maker, said on Wednesday it has been temporarily exempted from the United States' export control measures and is allowed to continue normal production activities in China for one year.

The US Department of Commerce allowed the chipmaker and its business partners to "engage in activities necessary to maintain current production of integrated circuits in China for one year without further licensing requirements," the company said in a statement.

The company's discussions with the U.S. government "led to an approval to supply equipment and items needed for development and production of DRAM semiconductors in Chinese facilities without additional licensing requirements," it said.

Last week, the Joe Biden administration announced a set of measures that restrict some exports of advanced semiconductor manufacturing equipment to companies in China, in an intensifying rivalry between the two nations, reports Yonhap news agency.

SK hynix currently operates multiple plants in China, including one in the eastern city of Wuxi.

Samsung Electronics, the world's largest memory chip maker, is also said to have been given the same temporary exemption, according to sources.

Samsung was not immediately available for comment.

Samsung and chip-maker SK hynix will strive for smooth business operations in China, in spite of the latest US export controls, on the basis of continued consultations with governments concerned, according to officials of the firms.

The Joe Biden administration announced a set of restrictions last week that will cut China off from certain semiconductor chips made with US equipment in an apparent bid to slow Beijing's technological and military advances.

The move was feared to disrupt operations of the South Korean chip giants in China, as they must undergo a case-by-case review by Washington to sell advanced chips to China, reports Yonhap news agency.

"The (South Korean) government has closely discussed the matter with the industry circle, and it has made consultations with the US side based on the discussions," a Samsung official had said.