Shulou(Shulou.com)11/24 Report--

CTOnews.com May 25 news, the Internet Information Office announced on May 21: because Micron's products sold in China did not pass the network security review, operators of key information infrastructure in China are prohibited from purchasing Micron products. As a result, a considerable share of China's storage semiconductor market has been vacated.

In this case, all sides are eyeing this part of the market share covetously. The South Korean government is said to have negotiated with the US to ask the White House to allow Samsung and SK to increase their semiconductor production in China to 10 per cent. Meanwhile, a US lawmaker insisted that South Korean companies not fill the market gap left by Meguiar's sanctions in an attempt to prevent Samsung Electronics and SK Hynix from profiting from it.

According to the US Federal Gazette, the South Korean government submitted its official opinion on March 21 on the details of the "guardrail clause" of the Semiconductor Act published by the US Department of Commerce. Before submitting its comments, it held close consultations with South Korean chipmakers, asking the US government to raise the limit of subsidized South Korean companies' semiconductor production capacity in China to 10 per cent.

In this context, South Korea also asked the United States Government to clarify the scope of the "technical compensation clause". To put it simply, the Technology compensation clause stipulates that subsidies must be returned if joint research activities are carried out with entities of concern such as China, and technical licenses are provided to them.

The guardrail rules proposed by the US Department of Commerce require full refund of subsidies if government-subsidized companies participate in major deals to substantially expand the semiconductor production capacity of concerned foreign entities such as China over the next 10 years.

Specifically, the actual production capacity of advanced semiconductors is limited to 5%, while that of traditional semiconductors is 10%. At present, the semiconductor industry generally refers to the 12 ~ 14nm process DRAM and more than 170 layers of 3D NAND flash memory as advanced chips, and Samsung Electronics and SK Hynix factories are producing these two products.

In response, the South Korean government requested that the actual expansion of advanced semiconductor production capacity be raised from 5% to 10%.

The South Korean government also asked the US government to clarify the scope of the "technology compensation clause". The "technology compensation clause" means that subsidies must be returned when conducting joint research with Chinese companies or providing technology licenses to Chinese companies. In addition, the South Korean government also asked the US government not to require companies to provide sensitive technical and confidential information and data during the review process, and to sign confidentiality agreements with semiconductor companies.

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