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Reuters exclusively reported that SK Hynix's plan to improve its Chinese plant is on the verge of collapse due to opposition from the U.S. government. Citing an official familiar with the issue, Reuters said, "The U.S.-China tech war cast a dark cloud over SK Hynix's plan."

According to a Reuters report on the 18th, SK Hynix planned to upgrade its plant by introducing the latest EUV exposure equipment produced by Dutch semiconductor equipment maker ASML to increase the production efficiency of memory semiconductors at its Wuxi plant in China.

Reuters introduced SK Hynix as "the world's largest supplier of DRAM memory semiconductors covering smartphones to data centers," and expressed concern that "it could be the next victim due to the U.S.-China geopolitical conflict."

In the past, the U.S. has opposed the import of such advanced equipment entering China as it can be used to strengthen China's military power.

Reuters quoted a senior White House official as saying, "The U.S. government avoided specific comments on whether SK Hynix would allow China to bring in Chinese EUV equipment," but added, "The Biden administration has been concerned that China does not have state-of-the-art semiconductor manufacturing capabilities using the technologies of the U.S. and U.S. allies."

SK Hynix's Wuxi plant is responsible for about half of the company's DRAM production. This is also 15% of the global market share, Reuters wrote, "Wuxi plant is playing a key role in the global electronics industry." Citing a market research firm IDC report, he predicted, "As demand for memory semiconductors has increased 19% year-on-year this year alone, major changes in factory plans will inevitably affect the global market."

Reuters noted that if the difficulties faced by SK Hynix are not resolved quickly, it could adversely affect Samsung Electronics, the world's No. 1 memory semiconductor manufacturers, and Micron Technology in the U.S. Currently, Samsung Electronics and Micron Technology are also pushing to convert ASML's EUV equipment, but they are not planning to use it in areas where exports to China are restricted.

By Staff Reporter Da-in Oh (