On Tuesday, the U.S. government granted indefinite waivers to Samsung (KS:005930) and SK Hynix, South Korea's leading memory chip manufacturers, allowing their continued operations in China. This move has been hailed by both companies and South Korea's government as a significant resolution to a trade issue, reducing uncertainty around their production in China and contributing to the stabilization of the global semiconductor supply chain.
The U.S. had imposed restrictions on advanced chip exports to China in October 2022, which led to concerns within South Korea's semiconductor industry. To mitigate these concerns, one-year licenses were issued to Samsung and SK Hynix, however, these licenses were set to expire.
Choi Sang-mok, senior presidential secretary for economic affairs for South Korea’s president Yoon Suk Yeol, commended the decision. Both Samsung and SK Hynix echoed this sentiment, expressing relief over the decision.
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