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As the United States continues to increase its pressure on China's technological development, South Korean chip manufacturing giant Hynix no longer tolerates the United States' policy of maximum suppression of China and decides to take countermeasures. The U.S. House of Representatives' Select Committee on U.S.-China Strategic Competition plans to increase scrutiny of U.S. chipmakers' interests in China and require CEOs of relevant companies to testify before Congress. The move sparked resentment and anger from Hynix, who saw the committee's approach as an attempt to hinder China's technological rise and lose its mind.
South Korea's Hynix is a world-renowned chip manufacturing giant, and they are deeply aware that the escalation of the U.S. chip export control policy against China will seriously affect the development of their enterprises in China. However, Hynix did not want to succumb to U.S. pressure, and they decided to break the U.S. restrictions on the export of extreme ultraviolet lithography machines to China and upgrade their semiconductor factories in China. Although this is not an easy task, because in the context of the United States blocking the export of high-end lithography machines from the Netherlands to China, Hynix wants to upgrade its chip manufacturing process in China, facing many difficulties and challenges. However, Hynix is determined to upgrade some of its memory production facilities in China to 10nm this year. Hynix believes that as the global chip market begins to recover, the expansion of high-end chip production capacity is urgent. They have established internal working groups to address geopolitical pressures and believe that corporate risks can be mitigated to a large extent.
Hynix's decision to insist on upgrading the production equipment of chip companies in China is also based on a number of factors. First, in the context of the escalating chip war against China, they realized that the United States aims to weaken the competitiveness of China and its allies in related industries, and clear the way for their own industries to monopolize global market share. The U.S. not only restricts China's access to high-end chips, but also prevents the U.S. and its allies from importing low-end chips from China. Hynix is well aware that this move by the United States is aimed at cutting off the financial path of South Korean chip companies in China in the field of low-end chips. Faced with such a situation, Hynix must invest heavily in upgrading the equipment of its chip manufacturing plants in China to meet the challenges posed by these factors.
In addition, one of the important reasons for Hynix to upgrade the equipment technology of its enterprises in China is the rapid rise of China's semiconductor industry. According to a report by Barek, the number of semiconductor manufacturers in China far exceeded expectations. A report by the International Semiconductor Industry Association also pointed out that China's chip production capacity will rank first in the world with a growth rate of 13%, and chip production in Chinese mainland is expected to grow to 8.6 million pieces per month in 2024. At the same time, the global chip production scale is only 30 million pieces per month. The rapid growth of China's semiconductor industry has made foreign chipmakers such as Hynix feel threatened, which is one of the important reasons why they are accelerating the upgrading of equipment and technology in China.
Despite the pressure and various difficulties of the United States' extreme suppression of China, Hynix is determined to break through these geopolitical barriers and upgrade the production equipment of chip companies in China. They firmly believe that no matter how much the United States restricts, as long as China is willing to do it, no one can stop it. They are well aware that if they do not continue to upgrade their chip manufacturing technology and output in China under pressure from the United States, it may lead to the rise of China's semiconductor industry and threaten the survival of foreign companies such as Hynix.
Hynix's persistence and determination are based on self-interest and future survival considerations. They realized that if they didn't take action, their production lines in China would be obsolete. They clearly understand that the goal of US suppression is not to destroy its own chip companies, but to weaken the strength of competitors and allies and achieve its monopoly in the global market. Therefore, Hynix must take action to break through the political blockade of the United States and provide its production lines in China with the advanced equipment they need to ensure their competitiveness and survival in the Chinese market.
Hynix's decision also fully takes into account the rise and vigorous development of China's semiconductor industry. They realized that China had become a serious competitor in the global semiconductor industry, and that China's chip production capacity was growing rapidly, posing a threat to South Korean companies. Hynix is well aware that if it does not upgrade its equipment and technology in China and expand its production capacity, they will not be able to compete with Chinese competitors and lose their competitive advantage in the Chinese market. Therefore, it is crucial for Hynix to upgrade the equipment technology of chip companies in China.
To sum up, in the face of the situation of extreme suppression by the United States against China, Hynix is determined to break the restrictions on the export of extreme ultraviolet lithography machines from the United States to China and improve the chip manufacturing process of its enterprises in China. They face many difficulties and challenges, but for their own interests and future survival, they must break through these geopolitical barriers and upgrade their chip manufacturing equipment in China. They are well aware that the rapid rise of China's semiconductor industry has posed a threat, and only through technological upgrading and capacity expansion can they maintain their competitiveness and survival space in the Chinese market. Hynix's determination and efforts will lay a solid foundation for the development and future of the Korean chip industry.
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