Samsung may face trouble with the import of EUV semiconductor equipment into China

We all know that the US has imposed several bans and sanctions on exports from China. In addition to the US, Japan, and the Netherlands have joined the United States in posing restrictions on exports from China. They have banned the export of semiconductor equipment. The recent step by these countries could pose curbs on the semiconductor manufacturing capacity of Samsung Electronics in China. This unit of Samsung Electronics is concerned with the manufacturing of NAND and DRAM chips.   

The latest information comes from ET News. As per this news, the three countries have had debates and discussions regarding this matter under the National Security Advisor of the US. Although these terms and conditions haven’t been set in stone as of now. But if this information is expected to be true and these countries agree on abiding by these restrictions, then it would become quite a difficult situation for Chinese manufacturers. Since it won’t be able to attain two main semiconductor manufacturing techs like DUV (Deep Ultraviolet) and EUV (Extreme Ultraviolet).

The TEL based in Japan is concerned with the shipment of DUV equipment. On the other hand, ASML in the Netherlands is the sole EUV equipment manufacturer across the globe. The tech giant Samsung acquires EUV equipment from ASML. On the other hand, Samsung and ASML have signed a deal regarding the next-gen EUV lithography. The deal is worth 4 trillion won ($3.2 billion).

In addition to this, the tech company Samsung manufactures a large quantity of NAND and DRAM flash chips in China. It indicates that the South Korean tech company could face difficulties if ASML partners with the US in banning exports of highly developed semiconductor technologies to the Far Eastern country.

Moreover, the tech company Samsung is planning to expand the semiconductor capacity at the P3 factory in South Korea. In addition to this, Samsung is also working on the construction of a $17 billion semiconductor factory in Texas. It seems like Samsung is adopting a new strategy that would make it less dependent on China as a semiconductor manufacturing hub. For this reason, the tech giant has made investments in setting up new facilities in various countries.