Sokor Chipmakers In Delicate Balancing Act Between U.S., China

Concerns are growing that SK hynix Inc.'s plan to overhaul its Chinese factory with a cutting-edge chipmaking machine could be in jeopardy due to opposition from the United States, Woo Jae-yoon reported for Yonhap News Agency.

Photo Insert: SK hynix, Incheon, South Korea

Earlier this week, U.S. Trade Representative (USTR) Katherine Tai effectively acknowledged that Washington had opposed such efforts by the South Korean chipmaker to bring in advanced machines to its chip fabrication plant in Wuxi, China, during a radio interview in Seoul.

"There are legitimate concerns about the risks to national security in terms of where this technology ends up," she said, implying that such high-tech tools could be used to enhance Chinese military capabilities and other strategic industries.

The technology in question is Dutch firm ASML Holding's extreme ultraviolet (EUV) lithography, essential to pack ever tinier transistors in microchips to make them faster, more powerful, and more energy-efficient.

The precarious geopolitical situation SK hynix finds itself in stark contrast to a recent announcement by Samsung Electronics Co., the world's biggest memory chip producer, to make a $17 billion investment in the U.S. to bolster its competitive edge in the global semiconductor industry.

Two days after Tai made the remarks, Samsung unveiled a plan to build a new chip fabrication plant in Taylor, Texas, to produce advanced chips used in applications for mobile, 5G, high-performance computing, and artificial intelligence, based on the EUV technology.

Washington welcomed the news, saying "securing America's supply chains is a top priority for President Biden and his administration," and the decision will help "protect our supply chains, revitalizing our manufacturing base and creating good jobs right here at home."

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