In order not to quarrel with the US authorities.
The US authorities have already asked their South Korean counterparts to influence Samsung Electronics and SK hynix to curb their expansion in the Chinese market amid a ban on the sale of American Micron Technology products for use at critical infrastructure facilities in China. Apparently, as noted by DigiTimes, Samsung Electronics and SK hynix will heed these recommendations. South Korean manufacturers must balance between the interests of the United States and China, and therefore will try not to go into confrontation with either side.
Image Source: AFP
Korean companies, which produce a significant part of their memory in China, are already partly indebted to the US authorities, since they granted Samsung and SK hynix a delay last October on restrictions on the supply of certain class of lithographic equipment to China. Engaging with the US authorities in a positive way is also beneficial for Samsung Electronics in particular, as it expects to receive subsidies for the construction of its new contract plant in Texas.
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On the other hand, both Korean memory manufacturers are heavily dependent on the Chinese market not only in terms of product sales, but also as a source for the supply of raw materials. The Chinese authorities are interested in replacing Micron products with advanced foreign-made solutions, since domestic companies cannot yet compete with Korean or American manufacturers of memory chips in terms of technological development, and US counter sanctions only exacerbate the situation.
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