U.S. Tightens Grip on Semiconductor Exports to China

The United States government announced plans to tighten restrictions on global chipmakers Samsung, SK Hynix, and Intel, affecting their ability to acquire U.S. semiconductor manufacturing equipment in China. The new measures involve revoking prior permissions, making it harder to produce chips within Chinese territory, according to the Federal Register.

Previously granted authorizations allowed these companies an exception to the sweeping 2022 restrictions on semiconductor equipment sales to China. Companies are now required to obtain specific licenses to buy the equipment, a move expected to reduce sales for American equipment suppliers like KLA Corp, Lam Research, and Applied Materials.

Industry experts suggest this shift may benefit domestic Chinese equipment manufacturers and Micron, a U.S. competitor to the South Korean firms in the memory chip market. The policy changes are set to take effect 120 days from the announcement.

(With inputs from agencies.)