Samsung and SK Hynix, two major Korean memory companies, have decided to halt the sale of their used chipmaking equipment amid concerns about potential repercussions from the United States. Reports suggest that they fear the equipment could end up in the hands of China or Russia, leading to sanctions from the US.
These concerns have prompted Samsung and SK Hynix to stop selling their old machines in 2022, opting instead to store them. Typically, these companies would pass on their used equipment to dealers who auction it off, with Chinese companies often buying and refurbishing the equipment.
The decision to halt sales comes as the US pressures companies to restrict the export of advanced technology to China over security concerns. Secretary of Commerce Gina Raimondo emphasized the importance of preventing China from accessing sophisticated technologies for military purposes.
Japanese officials and companies have expressed surprise and reluctance to implement new measures in response to these pressures. Raimondo also highlighted the need to diversify the semiconductor supply chain, as it is currently heavily concentrated in just a few countries, particularly Taiwan.
To address this issue, the US is encouraging investment in the semiconductor industry in Southeast Asia. American businesses have announced plans to invest over $1 billion in the Philippines, and many chip companies are setting up facilities in countries like Malaysia.