“US asks South Korea not to absorb chip shortages if China bans Micron”

The US has asked South Korea to urge its chipmakers not to absorb chip shortages in the Chinese market if that country bans Micron. China is currently investigating Micron after the US placed restrictions on the export of chips to China.

The United States made the request just before the South Korean president leaves for Washington DC to visit the White House. That reports the Financial Times based on four anonymous sources familiar with the matter. The US has asked the country to “encourage” Samsung and SK Hynix not to increase their sales in China if Micron is banned from entering the Chinese market. It is not known how South Korea will respond to this.

The Cyberspace Administration of China said in March that it a security investigation has begun to the products Micron sells in the country. It is still unknown whether the regulator will take measures against Micron. The memory manufacturer previously said it was cooperating with the Chinese government’s investigation and that its operations in the country are currently running normally, writes Reuters. Sales in China account for a quarter of Micron’s sales.

At the end of last year, the United States introduced far-reaching export restrictions on the export of chips and chip production equipment to Chinese companies. In December, YMTC, a Chinese manufacturer of memory chips, was placed on the so-called entity list. That company is therefore also subject to such export restrictions. YMTC competes with the American Micron, one of the three largest memory manufacturers in the world, next to South Korean chipmakers Samsung and SK Hynix.