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Samsung Halts Sales of Used Chip Equipment Nationwide to Avoid US Sanctions

Hei Bai Fri, Mar 22 2024 08:21 PM EST

On March 13th, according to reports from domestic media, as chip manufacturers like Samsung and SK Hynix continually upgrade their processes, they often need to replace old chip manufacturing equipment.

Usually, these phased-out devices are resold in the second-hand market. However, due to concerns about US sanctions, Samsung and SK Hynix have now completely stopped selling old equipment and prefer to stockpile them in warehouses.

Reports indicate that the primary demand for second-hand chip equipment currently comes from mainland China, mainly for producing mature process chips used in automobiles, home appliances, and other industries. However, with the US blocking advanced chip technology to China and Russia, some discarded South Korean equipment has become highly sought after.

Samsung and SK Hynix are worried that these old devices may fall into the hands of "wrong" companies, and after modification, they could be used in advanced semiconductor processes to bypass US export control measures.

However, since October 2022, when the US implemented new regulations on chip exports, Samsung and SK Hynix had already begun suspending the sale of obsolete semiconductor equipment.

Recently, some exclusive parts suppliers in South Korea were found to have supplied chip equipment manufacturers domestically, which drew attention from the US Department of Commerce, causing anxiety among related South Korean companies. 0c57b496-5bd4-4072-86bb-d01c4d0da4c6.png