Samsung is getting its chip licenses revoked in China | Infinium-tech
Samsung and SK HYNix are trapped in a crossfire between the US-China trade war, as two chip manufacturers are canceling their licenses by the US Department of Commerce and they will not be able to use new equipment in their Chinese factories.
Both Samsung and SK Hinix have chip manufacturing facilities in many countries including China. Interesting bit about Chinese factories, however, is the fact that Samsung, for example, produces heritage chips there, except for the production of high -end chips in South Korea and America.
The US is a major partner in the chip segment as it has several manufacturing licenses for US-made devices. The US Department of Commerce has confirmed that it is canceling the license of Samsung and SK Hinix to upgrade or expand the production capacity in the country, but it will not cancel their current facilities and licenses of equipment.
This essentially means that if the device breaks, Samsung and SK Hinix will not be able to change it.
The US is trying everything in its power to produce China’s ability to produce modern chips and transfer chip production away from the country. Unfortunately, for Samsung’s chip arm, it is another obstacle to remove.
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