Its CEO said that S.K. Hynix Corp (000660. K.S.), the world’s No. 2 memory chip producer, would petition the U.S. for a year’s reprieve from semiconductor bans against China.
At the South Korean annual general meeting of shareholders, Chief Executive Park Jung-ho informed reporters that the business would request the exemption once the grace period ended in October.
He predicted successful US-Korea talks. “We’ll buy time and modify management too. After the one-year authorization expires, we will request another extension.”
In October 2018, S.K. Hynix said it had secured a year’s authorization from the U.S. commerce department to provide chip fabrication equipment to Chinese plants without an additional license.
The U.S. restricted chip-making equipment exports to China to halt China’s technological growth and required permits for U.S. businesses to sell sophisticated chips.
After the evaluation, the business announced Wednesday that it would develop an advanced chip packaging unit in the U.S.
It also considered applying for U.S. Chips Act subsidies.
The Biden administration said last month that corporations receiving $52.7 billion from the Chips Act would have to share earnings and explain how they would offer affordable childcare.
The policy is crucial to the U.S.’s efforts to compete with China in global markets by bringing chip production home.
