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Plans for SK Hynix’s key semiconductor plant are hampered by a US-China technology dispute

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News Tech: South Korea’s SK Hynix’s plans to overhaul its huge Chinese facility to make memory chips more efficient are in jeopardy, a source familiar with the matter told Reuters. A potential setback could put SK Hynix, one of the world’s largest suppliers of DRAM memory chips used in everything from smartphones to data centers, into the next geopolitical battle between the US and China may become.

A senior White House official declined to comment specifically on whether US officials would allow SK Hynix to bring his EUV tools to China. However, officials told Reuters the Biden administration remains committed to blocking China from using technology from the United States and its allies to develop cutting-edge semiconductor manufacturing that could help modernize China’s military.

SK Hynix’s production plans call for upgrading its mass production facility in Wuxi, China, with the latest ultraviolet lithography (EUV) chip-making machines from Dutch company ASML, according to three people familiar with the matter officials said. The United States has long opposed exporting such advanced tools to China, saying they could be used to strengthen China’s military power.

The Wuxi factory is vital to the global electronics industry as it produces about half of his DRAM chips for SK Hynix, which makes up 15% of the world’s total. Big changes could impact the global storage market, with demand expected to grow by 19% in 2021 alone, according to data from analyst firm IDC. According to sources familiar with the company’s operations in China, the proportion of new types of chips in SK Hynix’s production will grow in the next two to three years, prompting the company to invest in his chips to keep costs down and speed up production It is said that an EUV machine will be required.

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