U.S. Tightens Rules on Samsung and SK Hynix Chip Production in China
The exemptions, granted in 2022, had allowed Samsung and SK Hynix to bypass sweeping U.S. export restrictions on advanced chipmaking tools.
The United States is set to make it harder for South Korea’s Samsung and SK Hynix to operate chip facilities in China, after revoking authorizations that previously allowed the firms to receive U.S. semiconductor manufacturing equipment.
The Federal Register confirmed the change, which also includes Intel, though the company has already sold its Dalian, China unit.
The exemptions, granted in 2022, had allowed Samsung and SK Hynix to bypass sweeping U.S. export restrictions on advanced chipmaking tools. With the revocations, the companies must now apply for licenses to import such equipment into China. The changes take effect in 120 days.
The U.S. Commerce Department said it intends to approve licenses for maintaining existing operations but will block efforts to expand or upgrade facilities. Shares of U.S. equipment makers Lam Research, Applied Materials, and KLA Corp fell sharply after the announcement, as their sales to China are expected to decline.
Seoul has urged Washington to minimise disruptions, warning of risks to the global semiconductor supply chain. Meanwhile, China’s Commerce Ministry criticised the move, vowing to defend corporate interests.
Meanwhile, Nvidia CEO Jensen Huang said talks with the White House on allowing sales of a downgraded version of its next-gen Blackwell GPU to China have begun, noting discussions will take time but align with U.S. AI leadership goals.
