Sanctions against Huawei will hit the export of Korean chips

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Sanctions against Huawei will hit the export of Korean chips

According to a report by the Korea Institute for International Economic Policy (KIEP), the latest US sanctions package against China’s Huawei will directly affect semiconductor exports from South Korea.

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According to Business Korea, Huawei’s ban on access to all external semiconductor technologies will have a negative impact on South Korean manufacturers, which will inevitably lose customers associated with the Chinese company. However, the effect promises to be short-term.

Recall that in mid-August, the administration of US President Donald Trump (Donald Trump) revised export control rules in order to increase the already serious pressure on Huawei and its foreign subsidiaries in order to prevent the Chinese tech giant from obtaining semiconductor chips that use at least some US technologies (in fact, this is a total ban).

The institute also added that due to the technology blockade, China will redouble its efforts to reduce dependence on external suppliers in the semiconductor sector. And although China cannot count on quick results in this area, South Korea, one way or another, will also have to focus on maintaining its position in terms of technological power.

Although the goal of US action is to punish Huawei, the imposed sanctions will force China to accelerate efforts to develop its domestic semiconductor industry to become more self-sufficient. Of course, such tough pressure on Huawei will force other Chinese companies to minimize their dependence on external suppliers related to the United States and its allies. And this, in turn, means a serious change in the market situation in the global semiconductor market.

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