Samsung Electronics and SK Hynix are re-evaluating their investments in China, as the leading Korean chipmakers respond to incoming US restrictions on the production of advanced semiconductors.
The Chips and Science Act passed by congress last week, which envisages $52bn in grants to support advanced chip manufacturing in the US, also contains qualified “guardrails” prohibiting recipients of US federal funds from expanding or upgrading their advanced chip capacity in China for 10 years.
The provisions have led Samsung and SK Hynix to rethink their exposure to China, according to people familiar with the views of both companies.
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