Seoul (The Hawk): In spite of the latest US export controls, Samsung Electronics and SK hynix will strive for smooth business operations in China, according to company officials in Seoul. These efforts will be based on ongoing consultations with relevant governments.
Last week, the administration of Joe Biden announced a set of restrictions that will cut China off from certain US-made semiconductor chips, ostensibly in an effort to slow Beijing's technological and military advancements.
In order to sell advanced chips to China, South Korean chip giants must undergo a case-by-case review by the United States government, as reported by the Yonhap news agency.
A Samsung official stated, "The (South Korean) government has consulted with the United States based on its discussions with the industry circle."
"I hope that the two governments will come to constructive conclusions regarding outstanding issues. We will make every effort to ensure the smooth operation of our factories in China through ongoing, confidential consultations with the relevant governments "the official continued.
SK hynix issued a statement and pledged to make comprehensive preparations to obtain US licences while collaborating closely with the Seoul government.
The release stated, "We will strive to operate factories in China while adhering to international standards in order to minimise the impact (of the export restrictions) on the domestic semiconductor industry."
According to the nation's industry ministry, the restrictions will not have a significant effect on domestic firms. However, uncertainty must be minimised through consultation with the United States.
"We will use a working group under the South Korea-U.S. Supply Chain and Commercial Dialogue (SCCD) platform as a regular discussion channel," the ministry said in a statement.
(Inputs from Agencies)