As U.S. eyes new China chip curbs, turmoil looms for global market

SEOUL, Aug 3 (Reuters) – Export restrictions being considered by Washington to halt China’s advances in semiconductor manufacturing could come at a substantial cost, experts say, potentially disrupting fragile global chip supply chains – and hurting U.S. businesses.

Reuters reported on Monday that the United States is considering limiting shipments of American chipmaking equipment to memory chip producers in China that make advanced semiconductors used in everything from smartphones to data centres.

The curbs would stop chipmakers like South Korean giants Samsung Electronics (005930.KS) and SK Hynix (000660.KS) from shipping new technology tools to factories they operate in China, preventing them from upgrading plants that serve customers around the world.

Samsung and SK Hynix, which control more than half of the global NAND flash memory chip market, have invested heavily in China in recent decades to produce chips that are vital to customers including tech giants Apple (AAPL.O), Amazon (AMZN.O), Facebook owner Meta (META.O) and Google (GOOGL.O). As well as computers and phones, the chips are used in products like electric vehicles that require digital data storage.

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