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U.S.-China chip war could hurt South Korea’s tech giants — but not for long, Fitch says



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Samsung Electronics Co. 8GB Double-Data-Rate (DDR) 4 memory modules.SeongJoon Cho | Bloomberg | Getty ImagesThe U.S.-China chip war could impact South Korea’s chip giants as China accounts for a large chunk of their production capacity — but there shouldn’t be long-term disruptions, according to Fitch Ratings.Samsung Electronics and SK Hynix face risks as the U.S. seeks to block China’s access to advanced semiconductor chip equipment, according to the June 7 report.related investing news 4 hours agoChina accounts for 40% of Samsung’s total flash memory chips (NAND) production capability, said the analysts led by Matt Jamieson. It also accounts for 40%-50% of SK Hynix’s dynamic random access memory (DRAM) chips and 20% of its NAND capacity.”We do not think there would be a major long-term supply disruption, as it is likely that Korea will become the main location for the two companies’ expansionary investment and technology upgrades,” the credit ratings agency said in the June 7 report.The U.S. in October introduced sweeping rules to cut off China’s access to obtain or manufacture high-tech semiconductor chips. They came as concerns grew over China’s ability to use such high-tech chips to advance its military capabilities. The Netherlands and Japan are reportedly poised to follow suit.Samsung Electronics and SK Hynix are the two largest manufacturers of memory chips globally, followed by U.S.-based Micron in third place. Memory chips are storage devices used in computers, smartphones and tablets.Read more about tech and …

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