Legend Capital and US Export Controls Impacting South Korean Semiconductor Firms in China
Investment Announcement Amidst Tensions
SK Group, through SL Capital, has established a new fund with Legend Capital worth 1 billion yuan (approximately US$140 million) focusing on enhancing South Korean semiconductor firms in China. This fund is a collaborative effort with the Wuxi Industry Development Group, indicating strong local government support for this initiative.
The Role of Various Stakeholders
- CK Hynix remains a key player in the semiconductor space, heavily investing in Wuxi, Chongqing, and Dalian as production hubs.
- Gigalane and Nextin have already taken steps to establish their operations in Wuxi, highlighting the fund's potential impact on South Korean tech innovation.
Sustaining Growth Despite US Restrictions
As the US tightens export controls focusing on advanced technologies, especially around AI memory chips, these moves by Legend Capital and partners are crucial. The collaboration seeks to enhance self-sufficiency in semiconductors while simultaneously navigating the challenges posed by American sanctions. With pressure mounting, the adaptability and strategic partnerships formed by these leading firms will be essential for future success in the semiconductor industry in China.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.