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U.S. scrambles to prevent export curbs on China chips from disrupting supply chain

12 October 2022 09:30 (UTC +04:00)

The U.S. is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain, people familiar with the matter said, APA reports citing Reuters.

By late Tuesday, hours before a new restriction took effect, South Korean memory chipmaker SK Hynix Inc (000660.KS) said it got authorization from the United States to receive goods for its chip production facilities in China without additional licensing imposed by the new rules.

The Biden administration had planned to spare foreign companies operating in China such as SK Hynix and Samsung Electronics Co (005930.KS) from the brunt of new restrictions, but the rules published Friday did not exempt such firms.

As published, the rules require licenses before U.S. exports can be shipped to facilities with advanced chip production in China as part of a U.S. bid to slow China's technological and military advances.