Samsung Electronics and SK hynix are likely to benefit from the US’s regulatory expansion of Chinese general-purpose chips
The U.S. Commerce Department’s increased semiconductor industry regulation has hurt China’s exports. U.S. corporations may minimize their use of Chinese semiconductors to avoid further requirements
SMIC, Yangtze Memory Technologies (YMTC, for NAND), Changxin Memory Technologies (CXMT, for DRAM), and others are directly affected by the restrictions
U.S. general-purpose semiconductor purchases will likely shift to South Korean devices over Chinese ones
Based on “Verified End User” (VEU) laws, the U.S. government allowed Samsung Electronics and SK hynix’s Chinese facilities to import U.S. semiconductor equipment without license or time constraints in October
Domestic NAND enterprises, which have been hurt by the IT demand slowdown, are expected to benefit from this development, unlike DRAM, which has benefited from the AI growth
A plentiful supply of SK Hynix NAND, including solid state drives and other data storage devices, is due to severe competition and minimal technological difference between businesses