The US government has previously prevented global semiconductor equipment makers from exporting extreme ultraviolet (EUV) exposure equipment necessary for microprocessing to Chinese foundries (semiconductor consignment production) that produce system semiconductors. What the US government is focusing on this time is the supply of semiconductor equipment necessary for NAND flash, a memory semiconductor. This is because Chinese state-owned YMTC’s NAND flash manufacturing technology is predicted to surpass that of American companies this year.
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The semiconductor industry is concerned that Korean companies with production lines in China, such as Samsung Electronics and SK Hynix, will be hit at the same time. There is also an analysis that the pressure to join ‘Chip 4’, a semiconductor alliance led by the US, is getting stronger. Chip 4 is a semiconductor supply chain consultative body composed of the United States, Korea, Taiwan, and Japan.
China’s NAND technology is growing threateningly
YMTC did not receive attention in the global semiconductor market until 2017. Because they mightn’t come up with a product like this. It was in 2018 that global semiconductor companies began to be aware of YMTC. YMTC released the first 32-layer NAND flash in 2018. For NAND flash, how high the number of stages is raised is the measure of technology. However, even up to this point, compared to Samsung Electronics and Micron of the US, it was at a level that was 4 to 5 years behind in technology.
This year, the market landscape has changed. YMTC announced that it will start mass production of 192-layer three-dimensional (3D) NAND flash within this year. It is known that mass production of 232-layer NAND will be possible at the end of the year. It is a strategy to usher in an era of ultra-high stacked NAND faster than Samsung Electronics, SK Hynix, and Micron of the US, which are currently producing 176 layers.
This is why the US government blocked the import of NAND flash equipment. Unlike DRAM, which is a volatile memory semiconductor, NAND flash is a ‘non-volatile’ memory semiconductor that does not lose data even when the power is turned off. It is thanks to the NAND flash that you can store photos, music, and videos on your smartphone and take them out for viewing. It is known that Chinese companies have focused on research and development because it is easier to secure technology than DRAM.
The US government is analyzed to have judged that China’s NAND flash technology has risen to a level that can threaten US semiconductor companies and information technology (IT) companies such as smartphones. The reason that the US government banned the export of equipment used to manufacture 128-layer or higher NAND chips to China is to check the advanced NAND flash process technology.
Korea forced to choose between the US and China
Korean companies that have NAND flash production lines in China, such as Samsung Electronics and SK Hynix, are closely monitoring the situation. An official from the semiconductor industry said, “We are trying to figure out the details, such as whether the equipment to be used for 128-layer or higher NAND flash is banned or if it is possible if we get permission.” The two companies do not have any plans to expand lines or replace facilities in China for the time being, so these equipments are not needed right away. However, in order to import semiconductor equipment to China as needed in the future, it is likely that the company will need to obtain permission from the US Department of Commerce.
As the U.S. continued to check China’s semiconductor industry, the Korean government’s intentions became complicated. It is because the government and politicians are feeling the atmosphere that chip 4 membership is inevitable. We need to solve the ‘higher-order equation’ that must satisfy the demands of the US government without making the Chinese government feel uncomfortable. In particular, China accounts for 40% of Korea’s semiconductor exports. If China restricts imports of Korean semiconductors, it is predicted that the Korean economy will inevitably suffer. An industry official said, “The Korean government should negotiate with the US and China to ensure stable management and production activities of Korean semiconductor companies before joining Chip4.”
Reporter Park Shin-young nyusos@hankyung.com