U.S. Tightens Grip on Semiconductor Exports to China
The United States has revoked authorizations allowing Samsung and SK Hynix to receive American semiconductor equipment in China, necessitating new licenses. This decision affects major U.S. equipment makers and may benefit domestic Chinese competitors if market space opens, impacting global trade dynamics.
The United States has reinforced its restrictions on semiconductor exports by revoking authorizations that allowed chipmakers Samsung and SK Hynix to procure American manufacturing equipment in China. The revised policy, outlined in the Federal Register, means these companies must now obtain new licenses to continue their operations in China.
The revocation will not take effect immediately, with a 120-day grace period provided for transition. Intel, another affected company, had already sold its Dalian China unit before this change. The move is likely to reduce business for U.S. equipment manufacturers like KLA Corp, Lam Research, and Applied Materials, which have already seen a decline in their stock prices following the announcement.
This policy shift comes amid ongoing trade tensions between the United States and China. According to Chris Miller, author of "Chip War," the move may bolster domestic Chinese chipmakers and help U.S. competitors like Micron despite the broader implications for global semiconductor trade.
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