As U.S. semiconductor equipment manufacturers recently notified several companies with semiconductor plants in China that they would stop supplying products and services, SK Hynix received a temporary reprieve from the Department of Commerce that will allow it to continue receiving equipment for one year.

SK Hynix announced on the 12th that it had reached an agreement with the U.S. Department of Commerce to supply equipment needed for its semiconductor production facilities in China for one year without separate U.S. licenses. Accordingly, SK Hynix will reportedly be able to conduct production operations in China without any issues by receiving equipment without a license review for the next year.

A company official said, “We have reached an amicable agreement with the United States to continue producing semiconductor products in China,” and added, “We will continue to work closely with the U.S. Department of Commerce and our government to ensure that our Chinese factories operate within the scope of international order.”

The U.S. Department of Commerce announced on the 7th that it would control the export of equipment for △DRAM below 18 nanometers, △NAND above 128 layers, and △logic semiconductors below 14 nanometers produced in China. However, he added that Korean companies can obtain individual permission to supply equipment needed for their factories in China.

Accordingly, SK Hynix is known to have quickly prepared for the authorization process with the U.S. Department of Commerce and conducted related discussions.

During this process, SK Hynix emphasized to the U.S. that continuous equipment supply is necessary to ensure a smooth supply of semiconductors to the global market.

U.S. authorities have negotiated a one-year grace period to allow SK Hynix to obtain equipment without the separate licenses required by the new regulations, but the government is expected to need to find a long-term solution in the future.