Chinese semiconductor industry

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Appix

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South Korea chipmakers grapple with U.S. deadline for supply chain data​

Samsung and SK Hynix fear risk to client info as they prepare response by Nov. 8

South Korean chipmakers Samsung Electronics and SK Hynix have only a week left to decide how they will respond to the U.S. request for information on their supply chains.

The U.S. Department of Commerce asked multinational semiconductor companies on Sept. 24 to disclose data in 14 areas so that it can identify bottlenecks in the global supply chain, amid a severe shortage of chips and other components. Businesses have until Nov. 8 to comply.

The disclosures sought include those pertaining to client information, sales, inventory and plans to boost output. Many chipmakers have concerns about handing over sensitive data that, if leaked to outside parties, could disadvantage their company when negotiating contracts.
Both Samsung and SK Hynix have discussed the issue with the South Korean government, but neither company has settled on a response. During a trade show in Seoul late last month, executives from both manufacturers stopped short of elaborating on the next step.

"We're considering [the response] from various angles," one executive said.

The calculus for Samsung, the world's second-biggest contract chipmaker, is complicated by its plans to build a new plant in the U.S. with the help of government subsidies.

"Considering contracts with clients, turning in confidential business information may violate provisions," said Ahn Ki-hyun, a senior executive director at the Korea Semiconductor Industry Association.
But some within the industry see no choice but to comply with Washington while limiting the impact on business.

"We are continuing to negotiate so that confidential elements are not handed over, especially those pertaining to customer information," said one company representative.

South Korea is mounting a response as well. Hong Nam-ki, who serves as deputy prime minister and as minister of economy and finance, visited the U.S. in mid-October to express concerns about the disclosure request.

Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, said on Oct. 22 that it will submit the requested data by next week's deadline. The company also has pledged not to divulge sensitive client data, so it remains unclear how much information will be disclosed.

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Weaasel

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Appix said:

South Korea chipmakers grapple with U.S. deadline for supply chain data​

Samsung and SK Hynix fear risk to client info as they prepare response by Nov. 8

South Korean chipmakers Samsung Electronics and SK Hynix have only a week left to decide how they will respond to the U.S. request for information on their supply chains.

The U.S. Department of Commerce asked multinational semiconductor companies on Sept. 24 to disclose data in 14 areas so that it can identify bottlenecks in the global supply chain, amid a severe shortage of chips and other components. Businesses have until Nov. 8 to comply.

The disclosures sought include those pertaining to client information, sales, inventory and plans to boost output. Many chipmakers have concerns about handing over sensitive data that, if leaked to outside parties, could disadvantage their company when negotiating contracts.
Both Samsung and SK Hynix have discussed the issue with the South Korean government, but neither company has settled on a response. During a trade show in Seoul late last month, executives from both manufacturers stopped short of elaborating on the next step.

"We're considering [the response] from various angles," one executive said.

The calculus for Samsung, the world's second-biggest contract chipmaker, is complicated by its plans to build a new plant in the U.S. with the help of government subsidies.

"Considering contracts with clients, turning in confidential business information may violate provisions," said Ahn Ki-hyun, a senior executive director at the Korea Semiconductor Industry Association.
But some within the industry see no choice but to comply with Washington while limiting the impact on business.

"We are continuing to negotiate so that confidential elements are not handed over, especially those pertaining to customer information," said one company representative.

South Korea is mounting a response as well. Hong Nam-ki, who serves as deputy prime minister and as minister of economy and finance, visited the U.S. in mid-October to express concerns about the disclosure request.

Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, said on Oct. 22 that it will submit the requested data by next week's deadline. The company also has pledged not to divulge sensitive client data, so it remains unclear how much information will be disclosed.

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South Korea and Taiwan are stuck between a rock and a hard place. That's what happens when one is part of the US Alliance system and one hasn't comprehensively developed technologies to make one not vulnerable to potential sanctions undertaken by Washington. That is what happens, when one country has so much control over important technology and dominates an alliance system in which it can effectively decide who gets what and what.

It will be excellent for the world when China develops a comprehensive production and supply chain for semiconductor chips and semiconductor manufacturing equipment at the high end. Then, even Samsung can decide to use Chinese equipment to produce its memory chip semiconductors, instead of being vulnerable to a threat of cut off from either Japan or the United States.
 
FairAndUnbiased

FairAndUnbiased

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Weaasel said:
South Korea and Taiwan are stuck between a rock and a hard place. That's what happens when one is part of the US Alliance system and one hasn't comprehensively developed technologies to make one not vulnerable to potential sanctions undertaken by Washington. That is what happens, when one country has so much control over important technology and dominates an alliance system in which it can effectively decide who gets what and what.

It will be excellent for the world when China develops a comprehensive production and supply chain for semiconductor chips and semiconductor manufacturing equipment at the high end. Then, even Samsung can decide to use Chinese equipment to produce its memory chip semiconductors, instead of being vulnerable to a threat of cut off from either Japan or the United States.
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When Japan sanctioned South Korea, China stepped up to help Samsung survive.
 
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Tyler

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gelgoog said:
The Japanese semiconductor industry collapsed in the late 1990s. The last complex logic chip which they manufactured there were the earliest versions of the PlayStation 3 main processor (Cell) at Sony/Toshiba. Even then Cell was designed by IBM in the USA and the later versions of the chip were manufactured at IBM's US fab. Japan still retains some older processors they use in automotive and appliances. Japan basically lost the plot by not being able to scale their production up into the consumer market. At the same time they lost a lot of their memory business to upstarts in South Korea like Samsung and SK Hynix. Of those Japanese memory companies only Toshiba is still around in the form of Kioxia and just barely. Japan still has some strengths in some niche semiconductor products like image sensors, or supercomputers, but certainly not at the leading edge consumer market. This means companies like Nikon simply did not have the client base to justify spending money on EUV research anymore. Not enough volume.
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Western digital is now trying to buy Koxia. China should disapprove that sale in order to save Japan.
 
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Micron

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Appix said:

South Korea chipmakers grapple with U.S. deadline for supply chain data​

Samsung and SK Hynix fear risk to client info as they prepare response by Nov. 8

South Korean chipmakers Samsung Electronics and SK Hynix have only a week left to decide how they will respond to the U.S. request for information on their supply chains.

The U.S. Department of Commerce asked multinational semiconductor companies on Sept. 24 to disclose data in 14 areas so that it can identify bottlenecks in the global supply chain, amid a severe shortage of chips and other components. Businesses have until Nov. 8 to comply.

The disclosures sought include those pertaining to client information, sales, inventory and plans to boost output. Many chipmakers have concerns about handing over sensitive data that, if leaked to outside parties, could disadvantage their company when negotiating contracts.
Both Samsung and SK Hynix have discussed the issue with the South Korean government, but neither company has settled on a response. During a trade show in Seoul late last month, executives from both manufacturers stopped short of elaborating on the next step.

"We're considering [the response] from various angles," one executive said.

The calculus for Samsung, the world's second-biggest contract chipmaker, is complicated by its plans to build a new plant in the U.S. with the help of government subsidies.

"Considering contracts with clients, turning in confidential business information may violate provisions," said Ahn Ki-hyun, a senior executive director at the Korea Semiconductor Industry Association.
But some within the industry see no choice but to comply with Washington while limiting the impact on business.

"We are continuing to negotiate so that confidential elements are not handed over, especially those pertaining to customer information," said one company representative.

South Korea is mounting a response as well. Hong Nam-ki, who serves as deputy prime minister and as minister of economy and finance, visited the U.S. in mid-October to express concerns about the disclosure request.

Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, said on Oct. 22 that it will submit the requested data by next week's deadline. The company also has pledged not to divulge sensitive client data, so it remains unclear how much information will be disclosed.

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Just imagine how a China based fab like SMIC would have responsed if it is not illegally sanction by US Department of Commerce today.

TSMC and Samsung are currently the two biggest chipmakers in the world today.

If they only put aside their competition, communicate and issue a joint statement, its action would have a profound effects on USA today.

In fact it would put those shenanigans in the White House in a real dilemma and to shame.
 
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