Technology US sanctions on Huawei may affect Korean chip exports...

US sanctions on Huawei may affect Korean chip exports to China

SEOUL, Sept. 15 (Yonhap) – South Korea’s memory chip exports to China are at risk of being hit hard by US sanctions against Chinese telecoms giant Huawei Technologies Co. for its heavy reliance on it -with respect to the neighboring country, sources have provided this Tuesday.

New sanctions preventing the sale to Huawei of semiconductors manufactured or designed using U.S. equipment or software without Washington’s prior approval took effect today.

This US measure forced Samsung Electronics Co., the world’s leading memory chip maker, and SK hynix Inc., to stop shipping semiconductors to the Chinese company.

Huawei is one of Samsung’s top five customers. SK hynix’s dependence on the Chinese company is estimated to be 10% in terms of sales.

Industry sources noted that sanctions against Huawei would likely affect South Korea’s semiconductor exports to China given their heavy reliance on the world’s second-largest economy.

According to data from the Korea International Trade Association (KITA), China accounted for about 41% of South Korea’s memory chip exports during the January-July period.

The amount of overseas shipments of memory chips from South Korea reached $ 54.74 billion for the first seven months of the year, of which $ 22.49 billion relates to China. Hong Kong is just behind with an amount of $ 11.38 billion or a 20.8% share.

Over the same period, South Korean exports of flat panel displays and sensors to China amounted to $ 3.82 billion, or 43.7 percent of total shipments of these products. Vietnam came first with 44.5%.

Observers have noted that South Korean memory chip makers could face a shortfall of 10,000 billion won ($ 8.45 billion) if US sanctions remain in place for a year.

The estimated amount of the loss represents about a 10th of South Korea’s total semiconductor exports in 2019 which amounted to $ 93.93 billion.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest news

With Messi, but without Di María or Agüero, Argentina will go against Bolivia

With its star Lionel Messi, who was released from a sanction, but without the historic forwards Ángel Di María...

Photo 1: Amy Dorris, the former model who accuses Trump of sexual assault

Dorris claims that the US president sexually harassed her in 1997. US President Donald Trump faces a new scandal after...

“Yes there is, do not listen to Paty Navidad”: the advice of platanito on COVID-19

The comedian was diagnosed as positive for COVID-19, and said that it was 15 terrible days in which...

We remember some anecdotes of Ricardo Ciciliano

In this edition of En la Jugada we spoke with technical director Mario Vanemerak about former soccer player Ricardo...

Tiare Scanda seeks to revive the film industry with Club de los Idealistas

Cancun.- This September 24, the film “The Idealists Club ”, an invitation to meditate on life plans and to...

You might also likeRELATED
Recommended to you