U.S. Proposes Annual Approval System for Samsung and SK Hynix in China

In a significant policy shift, the U.S. Department of Commerce is evaluating an annual approval system for semiconductor equipment shipments to Chinese factories operated by Samsung Electronics Co. and SK Hynix Inc., according to Pulse, the English service of Maeil Business Newspaper Korea.

During discussions with South Korea, the U.S. proposed a 'site license' system under which companies like Samsung and SK Hynix, which manage chip fabs in China, would submit yearly lists of required equipment and materials for government approval, Pulse reported.

This new system, more stringent than the previous Validated End-User program, represents a compromise that avoids case-by-case approvals, thus providing more operational predictability while adhering to U.S. regulatory oversight.

(With inputs from agencies.)