By Joyce Lee
PYEONGTAEK, South Korea – Samsung Electronics Co Ltd is looking for a “frequent denominator” because it navigates restrictions on U.S. tech exports to China the place the South Korean agency makes chips, with potential challenges together with bringing in new chip-making gear.
The US is contemplating limiting shipments of such gear to reminiscence chip makers in China to sluggish technological advances at rivals and defend U.S. corporations, Reuters reported final month.
“There could possibly be some difficulties in the long term when we have now to place new gear into our manufacturing unit in China,” Chief Govt Kyung Kye-hyun, who heads Samsung’s chip enterprise, mentioned throughout a media tour of the agency’s chip-making amenities at Pyeongtaek, South Korea.
“We’re not driving on the battle between the U.S. and China, however we’re looking for a win-win answer,” he mentioned, including it's arduous for Samsung to surrender the China market, which he estimated provides greater than 40% of the worldwide IT business.
The US and China have been at loggerheads within the know-how sphere a minimum of because the administration of former President Donald Trump sanctioned Chinese language telecommunications gear makers on nationwide safety grounds. Stress has since risen over the international locations’ differing relations to international chip-making centre Taiwan, with america final week banning the export of superior synthetic intelligence chips.
Kyung mentioned Samsung had expressed concern a couple of U.S. proposal for a chip alliance dubbed Chip 4 – which might additionally embrace Japan and Taiwan – together with the necessity for South Korea to hunt China’s understanding earlier than any negotiations.
Samsung, the world’s largest chipmaker by income, is looking for to discover a “frequent denominator” that advantages all events together with provide chains worldwide, he mentioned.
Kyung additionally mentioned a latest slowdown in chip demand is prone to proceed subsequent yr however that Samsung can regulate investments to enhance revenue margins.
“We have to construct an enormous lodge to safe massive clients,” Kyung mentioned, including chip design corporations are very within the $17 billion facility Samsung is constructing in Taylor within the U.S. state of Texas the place manufacturing will start in 2024.
Samsung on Wednesday mentioned it had begun making NAND flash reminiscence chips at its third chip line in Pyeongtaek, which it mentioned is the world’s largest semiconductor manufacturing facility.
It plans to additionally make DRAM chips and supply contract manufacturing on the third line, and has begun basis work for a fourth line in Pyeongtaek.
Post a Comment