US withdraws Taiwan Electric, Samsung, SK Hynix China factory exemption order, slashing US semiconductor stocks

According to the report of the "Wallet Street Journal", the U.S. Department of Commerce is considering the exemption to withdraw the sale and allow some chip manufacturers to export U.S. technology to its domestic manufacturers, causing U.S. semiconductor stocks to fall on Friday.

The report pointed out that US Department of Commerce official Jeffrey Kessler has informed Samsung Electronics, SK Hynix and NTX this week that he hopes to end these exemptions. If implemented, the above-mentioned companies will be prohibited from sending American chip manufacturing technology to Chinese factories.

At present, including NTEC, Samsung Electronics and SK Hynix have comprehensive exemptions issued by the US government. Due to this exemption, the three companies can deliver semiconductor production equipment manufactured in the United States to their chip factory in China without requiring a license to apply for each equipment export order.

As the report of Huaer Street Journal, VanEck's semiconductor ETF fell by about 1%; NVIDIA and Qualcomm also fell by about 1% respectively, and NTD fell by about 2%.

The measures in this news arise in the United States and China maintain a stable trade cession, and chip export restrictions are a major challenge for the two sides to discuss. Just a few days ago, the U.S. and China reached a common understanding in London on the second trade agreement framework, and tried to fix the relationship after the tax closure was suspended in early May. However, the United States has subsequently issued a number of new chip export regulations, and China calls it "discriminatory", and the relationship between the two sides has become vicious again.

In recent years, the United States has repeatedly restricted its chip companies from exporting high-level artificial intelligence chips to China on the grounds of national security. NVIDIA pointed out in a financial report last month that export restrictions on China's H20 chips have been affected by the impact of about US$8 billion in revenue.

According to CNBC's report, NVIDIA Executive Director Huang Renfeng said at the financial conference that the AI ​​chip market of up to $50 billion in China is "actually completely closed to the US industry." When he was interviewed by CNBC in May this year, he described that it was a "huge loss" for American companies to be thrown out of the Chinese AI market.

In addition, according to the report of the "Walker Street Journal", this withdrawal of exemption is not yet a foregone conclusion. Internal opposition from the government is worried that the cancellation of exemption will ultimately allow China to control these factories.

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