U.S. Govt Considering Plans to Crackdown China’s Domestic 3D NAND Production
In recent years, the US government has taken steps to crack down on the production of logic chips in China using advanced manufacturing processes. to prevent the country from improving its military capabilities. In addition to logic chips, US authorities are now considering crackdowns on China’s 3D NAND manufacturing industry. The biggest problem is that it affects not only domestic manufacturers but also Samsung and SK Hynix.
The U.S. government is considering banning shipments of U.S. 3D NAND manufacturing equipment to Chinese flash memory makers with more than 128 layers, which is the only domestic 3D NAND maker in China, Yangjiang. Reported to affect Memory Technology (YMTC). Reuters Citing sources familiar with the matter. Moreover, such a move would also hit Samsung and SK Hynix, which also produce his 3D NAND memory in China.
Currently, China’s YMTC accounts for about 5% of global 3D NAND production, while Samsung, SK Hynix, and YMTC produce about 23% of global 3D NAND production in China. Reuters.
Previously, the US government restricted shipments of advanced chip-making tools to China, citing national security concerns. In contrast, 3D NAND poses little threat to national security. Meanwhile, Chinese-made 3D NAND competes with 3D NAND made by US companies Micron Technology and Western Digital. Protecting against cheap flash memory made in China could improve their market position, but South Korea-based Samsung and SK Hynix are understandably upset.
If this measure is approved, it will not only halt 3D NAND production in China and withdraw from the market without the all-important commodity memory, but also sell large amounts of memory, including Applied Materials, KLA, and Lam Research. It will also hit U.S.-based companies that are Equip China.
US companies make some of the most important fab tools, but companies in Japan, South Korea, and even Taiwan are likely to replace some of the equipment made in the US. As a result, it is unclear whether the US ban will have the desired effect on China. 3D NAND manufacturing industry in the long term.
Earlier this week, the U.S. government imposed new export rules that require U.S. companies to apply for an export license if they want to sell semiconductor manufacturing tools that can make chips using the 14nm class and thinner nodes.
