U.S. Revokes Semiconductor Waivers for China
The U.S. plans to cancel waivers allowing global semiconductor firms to use American technology in China, impacting companies like Samsung and SK Hynix. The decision affects both U.S. and foreign chipmakers, creating operational challenges in China. Shares of U.S. chip equipment firms like KLA Corp fell sharply.
The United States is set to revoke waivers that permit global semiconductor companies to utilize American technology within China, according to sources reported by the Wall Street Journal. This action could significantly impact major firms such as Samsung Electronics and SK Hynix.
Jeffrey Kessler from the Commerce Department informed leading semiconductor manufacturers, including Taiwan Semiconductor Manufacturing, about the impending cancellations. The decision has resulted in a drop in the share prices of U.S. chip equipment makers like KLA Corp and Lam Research.
While a Commerce Department spokesperson confirmed that chipmakers could continue operating in China, the new enforcement mechanisms mirror existing licensing requirements. This move is expected to complicate operations for foreign chipmakers producing semiconductors in China across various industries.
(With inputs from agencies.)
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