According to Korean media reports, the Biden administration does not seem to intend to stop restrictions on Chinese technology manufacturers. The Bureau of Industry and Security (BIS) managed by the U.S. Department of Commerce plans to investigate about a hundred companies in different fields to assess their dependence on Chinese suppliers. The findings will play a crucial role in how the United States formulates trade policy in the future, with sanctions expected to expand to include even defense-focused trade.
According to reports, the U.S. government is planning to expand restrictions on China's DRAM industry, which may have an adverse impact on manufacturers operating in China.
There are reports that Chinese DRAM manufacturers may be greatly affected, and companies such as Yangtze Memory (YMTC), Changxin Memory (CMT) and Semiconductor Manufacturing International Corporation (SMIC) may be affected.
Apple had previously canceled the purchase of memory chips from Yangtze Memory under the US ban, which was detrimental to both parties because it not only disrupted the supply chain, but also caused huge economic losses to the company. On the one hand, the possibility of Chinese manufacturers doing business in the United States is declining to zero, as both countries tend to strengthen "national security", ultimately leading to the respective production of corresponding regulated products.
In this case, memory products from companies such as Western Digital, Samsung and SK Hynix will see huge industry demand growth, mainly because these companies are Korean companies and have a green light to do business in the United States. Additionally, since both companies have flagship factories in China, they may be able to obtain some exceptions to trade controls, as the U.S. government previously did under the Verified End User (VEU) regulations.
It turns out that this move is quite beneficial for the DRAM industry not from China, but only on a regional level, not on a global scale. Companies such as Samsung, SK Hynix and Micron are likely to see a significant increase in industry orders, especially from industries such as automotive and defense, which will bring about the long-awaited recovery of the DRAM industry.