U.S. Tightens Grip on Chip Equipment Exports to China
The U.S. is tightening restrictions on semiconductor equipment exports to China, affecting companies like Samsung, SK Hynix, and Intel. This move comes as part of the ongoing trade tension between the U.S. and China, possibly benefiting domestic Chinese equipment makers and U.S. competitor Micron.
The United States is tightening its grip on semiconductor manufacturing exports to China, putting pressure on major chipmakers Samsung and SK Hynix by revoking previous authorizations. According to the Federal Register, this affects the companies' access to American semiconductor equipment.
Previously granted exemptions under sweeping 2022 restrictions have been rescinded, requiring Samsung and SK Hynix to obtain licenses for equipment purchases in China. Intel is also impacted, although it has since exited its China operations. The U.S. Commerce Department stated they would allow licenses for maintaining existing facilities but would restrict any expansion or technology upgrades.
While affected companies have not commented, U.S. equipment makers such as KLA Corp, Lam Research, and Applied Materials face potential sales declines in China. The policy change occurs amid a turbulent trade relationship, with a fragile tariff truce currently in place between the U.S. and China. The regulatory shift might benefit Chinese equipment makers and Micron, a key rival to Samsung and SK Hynix.
(With inputs from agencies.)
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