SK Hynix is in talks with the US to maintain its production capacity in China

SK Hynix initiates new talks with the US to preserve its production capacity in China

South Korean technology giant SK Hynix is seeking to reach a new agreement with US officials to continue the operations and increase the production volume of its NAND memory chip plant located in Dalian, China. By the end of the current year, the company must renew the special permits required for the export of US-made high-tech equipment to China.

Under the new regulations introduced last year, the general licensing regime granted to companies was abolished. This change forces manufacturers like SK Hynix and Samsung to fully comply with US export control regulations. One of the main requirements for extending the licenses is for South Korean companies to establish new manufacturing sites in the US or expand their existing facilities.

The current one-year license of SK Hynix is nearing its expiration, which severely impacts the company's global supply chain strategy. Company management aims to ensure continuity in the technological supply of the Dalian plant by signing a new agreement that will remain in force until 2027.

According to experts, these negotiations are part of the global technological competition between the US and China. South Korean companies are forced to follow a highly sensitive diplomatic and commercial path in order to both protect their market share in China and avoid US sanction pressures.