China’s import duties on US chips are waived indefinitely for South Korean companies.

On Monday, South Korea’s presidential office and tech giants Samsung Electronics and SK Hynix announced that the US has granted an indefinite waiver to allow them to supply US chip equipment to their China factories without needing separate approvals. 

This comes after the US was expected to extend a waiver granted to the South Korean chipmakers on a requirement for licences to bring US chip equipment into China. 

The move has greatly eased uncertainties related to the operation of the semiconductor manufacturing facilities of these firms in China. 

Samsung and SK Hynix have invested billions of dollars in their chip production facilities in China and together control nearly 70% of the global DRAM market and 50% of the NAND flash market. 

The companies have welcomed the decision, which they believe will contribute to the stabilisation of the global semiconductor supply chain.

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