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Samsung Electronics Receives Temporary Approval Over China Chip Production Facilities

CIO Insider Team | Friday, 14 October, 2022
Separator

Reports say that Samsung Electronics received approval for an exception to allow it to maintain at least temporarily memory-chip production facilities in China.

This comes a week after the US tightened export rules for China, limiting its ability to get advanced computing chips.

License has been granted to Samsung for the equipment needed to maintain existing facilities but not to export chips that are prohibited.

Recently, Beijing condemned the US over tightening export controls, making it difficult to procure and manufacture advanced computer chips, calling the US ‘isolating and backfiring’ for violating international economic and trade rules.

Reports said that China views the US to be abusing export control measures to maliciously block and suppress Chinese companies, to maintain its sci-tech hegemony.

the US said the export controls were added as part of its ongoing effort to protect US national security and foreign policy interests

China believes that the decision will not only damage the legitimate rights and interests of Chinese companies, but also affect American companies' interests.

Also China is strong that the US’ weaponization and politicization of science and technology as well as economic and trade issues will not stop its progress.

In its response, the US said the export controls were added as part of its ongoing effort to protect US national security and foreign policy interests.

US-China relations have deteriorated in recent years over technology and security issues. The US introduced a series of measures and restrictions to prevent China from acquiring chip technology, while China has allocated billions of dollars to invest in semiconductor production.

The semiconductor companies in the US and globally which either export chips or manufacture chips in China were impacted by the tensions. As a result, semiconductor companies such as Nvidia and AMD have seen a 40 percent decline in stock price over the past year.

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