When US authorities tightened export restrictions on certain types of lithographic equipment to China last October, Korean companies SK hynix and Samsung Electronics, which have extensive manufacturing bases in China, managed to negotiate a one-year exemption from the sanctions. Now Bloomberg reports that South Korean companies expect to negotiate longer-term preferences.
Image Source: Samsung Electronics
Memory makers are hoping they can keep their investment in their own Chinese facilities close to current levels, as it is simply not profitable for them to relocate facilities, and restrictions on the supply of new equipment would eventually lead to the degeneration of these enterprises.
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Second, Samsung is counting on US subsidies to build its new facility in Texas, a country that has made it clear that recipients of government funds will not be able to expand their production in China for ten years. In such a tangle of restrictions, Korean companies can only count on the goodwill of their American partners.
