U.S.-China Trade War Could Make All Memory Fabs in China Inefficient

The ongoing U.S.-China trade war is multifaceted in nature, so it affects or will affect dozens of industries and tens of thousands of companies. Apparently, the confrontation between the two powers could make all computer memory fabs in China inefficient compared with facilities outside of the country as the U.S. does not want leading-edge equipment to be installed anywhere in China. According to Reuters, this has already affected SK Hynix's plans for its fab in Wuxi. 

SK Hynix's C2 semiconductor fabrication plant in Wuxi, China, produces a substantial portion of the company's DRAM output and some NAND memory. Over the past few years SK Hynix expanded cleanroom space at the fab at least once, but in a bid to introduce next-generation DRAM process technologies to the facility, it needs to equip it with extreme ultraviolet (EUV) lithography tools and other leading-edge machinery. But it looks like the company is going to face some problems with this, reports Reuters.

"They are really caught between a Chinese rock and a U.S. hard spot," said Dan Hutcheson, chief executive officer of VLSIresearch, in a conversation with the news agency. "Anyone who puts an EUV tool in China gives China the capacity. Once it's there, you have no idea where it will go after that. The Chinese could always seize it or do whatever they wanted to do."

Anton Shilov
Contributing Writer

Anton Shilov is a contributing writer at Tom’s Hardware. Over the past couple of decades, he has covered everything from CPUs and GPUs to supercomputers and from modern process technologies and latest fab tools to high-tech industry trends.

  • Any more restrictions and it will give China a green light to reverse engineer whatever they need.
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  • People can't play nice and keep politics out of it (those comments are no longer visible) then this will be closed for further comment.
    Reply