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The U.S. Federal Acquisition Regulation Council will prohibit procurement of products with semiconductors from SMIC, CXMT, and YMTC starting December 23, 2027. This decision addresses national security risks and aims to limit reliance on Chinese semiconductors, impacting products like servers, PCs, and smartphones.

The exclusion is anticipated to benefit Samsung Electronics and SK hynix, as U.S. companies face memory shortages and rising prices. With the current semiconductor boom, projections indicate that the market strategies of Chinese firms may be hindered, allowing Korean companies to maintain market dominance.