Understand the layout of Samsung and Hynix in China Which A-share companies may be affected by the lifting of relevant restrictions?
"Science and Technology Innovation Board Daily" on October 9 Choi Sang-mu, chief economic secretary of the South Korean presidential office, said that the US government made the final decision to indefinitely exempt Samsung Electronics and SK Hynix from providing semiconductor equipment to their factories in China without other licenses. Cui Xiangmu revealed that the United States has notified Samsung Electronics and SK Hynix and other relevant enterprises of this decision, which will take effect from today.
So, in the mainland, what production plants do Samsung and SK hynix have?
As can be seen from the official website information, Samsung has three production centers in China, which are located in Xi'an, Suzhou and Tianjin.
Among them, Samsung Xi'an factory is mainly used to produce memory chips. In 2013, Samsung signed a strategic cooperation framework agreement and memorandum of understanding with the Shaanxi Provincial and Xi'an Municipal Government and the Administrative Committee of Xi'an High-tech Zone, announcing that Samsung Electronics' US$7 billion memory chip project officially settled in Xi'an High-tech Zone. After that, the second and third phases of the project were added successively.
In May this year, statistics in media reports pointed out that Samsung's Xi'an factory accounted for 40% of Samsung's NAND Flash production capacity, and the monthly production capacity of the two factories was 250,000 pieces, accounting for 1/10 of the global NAND Flash production capacity, and it was also Samsung's only memory chip factory overseas.
Samsung Suzhou plant is mainly engaged in the assembly and testing of memory, memory modules and integrated circuits.
Samsung Tianjin factory is mainly engaged in LED products, Tianyan check shows that Tianjin Samsung LED company was established in 2009, the business scope includes electronic components manufacturing, electronic components wholesale, electronic components retail, semiconductor lighting device manufacturing, etc.
SK Hynix has two production sites in China, one in Chongqing and one in Wuxi.
Among them, the Wuxi plant is one of the main memory chip production forces of SK Hynix. Some analysts have previously pointed out that the output of SK hynix Wuxi plant accounts for about half of the company's DRAM chips and 15% of global production.
According to past media reports, the Chongqing plant mainly focuses on chip packaging.
It is worth mentioning that SK Hynix has acquired Intel's NAND flash memory and storage business in 2021, including Intel's Dalian factory, but as of the end of last year, Dalian NAND flash memory chip business has not been fully delivered.
It is worth noting that Samsung and SK Hynix are memory chip giants, and as can be seen from the above, most of the factories of the two companies in the mainland focus on memory chips.
CITIC Securities pointed out that from the perspective of industry supply, the growth rate of industry supply in 2023 will be lower than the growth rate of demand, and supply and demand will gradually reach a balance, which will help inventory repair, and it is optimistic that the storage sector cycle will bottom out in the second half of 2023. On the demand side, analysts believe that terminal manufacturers are currently in the late stage of destocking, and annual shipments are expected to show a low and then a high, optimistic about the recovery trend of downstream demand from the second half of 2023 to 2024.
Overall, it is expected that in the second half of the year, with the dematerialization of inventory and the gradual return of demand, the industry segment leaders are expected to usher in performance repair opportunities, optimistic about the investment opportunities under the recovery of the domestic storage industry chain cycle and the trend of localization
What suppliers are Samsung and SK Hynix?
Samsung Electronics disclosed the 2022 supply chain list at the end of last year, including 6 Chinese mainland companies, namely AAC Technologies, BYD, Goertek, Xinan Electric, Xuguang Technology, and Sunny Optics.
In addition, according to incomplete statistics from the Science and Technology Innovation Board Daily, these A-share companies have provided semiconductor-related services for Samsung and SK Hynix:
(Science and Technology Innovation Board Daily)