Hynix Semiconductor Inc, the world's second-largest memory-chip maker, was unfairly penalized by EU tariffs, the WTO ruled, sources said.
The global trade body upheld a complaint by South Korea against the EU's levy on computer memory chips, according to the sources, who declined to be identified. The 25-nation bloc failed to prove Hynix received an illegal state subsidy when Korean banks gave it loan guarantees, the sources said.
The decision, which mirrors last month's ruling against punitive levies implemented by the US, paves the way for the chipmaker to operate its domestic plants at capacity and sell directly to Europe. Hynix avoided the levies by diverting production to the US.
"This helps the company focus on strategy and find more freedom in its planning," said Kim Kyeong-seob at KB Investment Trust Management Co in Seoul. "It looks like Hynix is no longer going to be held back by these tariff issues."
The EU "acted inconsistently" with WTO regulations "in determining that 2001 restructuring constitutes a financial contribution," the ruling says.
The EU will have 30 days to respond to the confidential interim ruling, after which the trade body will issue a final report, which is due in the next few months.
Either side can then appeal.
The US and the EU accused South Korea of illegally bailing out Hynix through government-backed financial restructuring packages.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has appointed Rose Castanares, executive vice president of TSMC Arizona, as president of the subsidiary, which is responsible for carrying out massive investments by the Taiwanese tech giant in the US state, the company said in a statement yesterday. Castanares will succeed Brian Harrison as president of the Arizona subsidiary on Oct. 1 after the incumbent president steps down from the position with a transfer to the Arizona CEO office to serve as an advisor to TSMC Arizona’s chairman, the statement said. According to TSMC, Harrison is scheduled to retire on Dec. 31. Castanares joined TSMC in
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
FACTORY SHIFT: While Taiwan produces most of the world’s AI servers, firms are under pressure to move manufacturing amid geopolitical tensions Lenovo Group Ltd (聯想) started building artificial intelligence (AI) servers in India’s south, the latest boon for the rapidly growing country’s push to become a high-tech powerhouse. The company yesterday said it has started making the large, powerful computers in Pondicherry, southeastern India, moving beyond products such as laptops and smartphones. The Chinese company would also build out its facilities in the Bangalore region, including a research lab with a focus on AI. Lenovo’s plans mark another win for Indian Prime Minister Narendra Modi, who tries to attract more technology investment into the country. While India’s tense relationship with China has suffered setbacks