[22.08.01 Reuters] U.S. considers crackdown on memory chip makers in China

U.S. considers crackdown on memory chip makers in China

U.S. considers crackdown on memory chip makers in China

▣ Article summary

▶ The United States is considering limiting shipments of American chipmaking equipment to memory

     chip makers in China including Yangtze Memory Technologies Co Ltd (YMTC).

▶If President Joe Biden's administration proceeds with the move, it could also hurt South Korean memory chip

    juggernauts Samsung Electronics Co Ltd (005930.KS) and SK Hynix Inc (000660.KS)

▶Under the action being considered, U.S. officials would ban the export of tools to China used to make

    NAND chips with more than 128 layers

 

▣ Ducky's Edge

▶The U.S. regulations on semiconductor equipment in China are expanding toward not only 14 nm Foundry

    process biz but also memory biz.

    In the case of DRAM, EUV equipment will be essential from 14nm process, and if DUV as well as EUV equipment

    also regulated, it will not be possible to make more than 128-layer NAND Flash as mentioned in the article.

▶If Samsung and SK Hynix, which are the largest and second largest memory makers in the world are affected

   from US regulation, memory supply will slow down due to the suspension or delay of process upgrades and memory

   prices will rise in the near future. 

▶In preparation for this, there is a possibility that the Korean government can also negotiate to obtain exceptional

   approval (EUV/DUV equipment, etc.) for Samsung/SK Hynix's Chinese plant instead of joining the Chip 4 alliance

   demanded by the U.S. government.

   Also, Samsung / SK Hynix they have established good relations with the U.S. government by announcing large-scale

  investments in new plants (semiconductors, batteries, etc.) in this year and are continuously negotiating in a friendly

  manner which is we need to keep an eye on the additional situation.

 

▣ Ducky’s Additional Info.

Korean memory makers DRAM/NAND Fab Capacity in China.

 ▶ Samsung

      Xian Fab : NAND flash Fab 12” 21K/wafer per month

      Around 35% of Samsung NAND total Capacity. (13% of W/W NAND Capacity)

▶ SK Hynix

     Wuxi Fab(C2) : DRAM Fab 12” 20K/wafer per month

       Around 45% of SK Hynix DRAM total Capacity. (12% of W/W DRAM Capacity)

     Dairen Fab(Solidigm) – NAND Fab, 12” 10K/wafer per month

        Around 25% of SK Hynix NAND total Capacity. (5% of W/W NAND Capacity)