U.S. Revokes Chip Equipment Authorizations for Samsung and SK Hynix in China
The U.S. is revoking authorizations for Samsung, SK Hynix, and Intel to receive American semiconductor equipment for Chinese facilities. This change necessitates acquiring export licenses, impacting the global semiconductor supply chain. The decision might benefit Chinese and U.S. chipmakers like Micron amidst ongoing U.S.-China trade tensions.
The United States is intensifying challenges for South Korean chipmakers Samsung and SK Hynix by revoking their ability to receive American semiconductor manufacturing equipment in China. This adjustment, documented in the Federal Register, eliminates prior exemptions to restrictions implemented in 2022 regarding U.S. equipment sales to China.
The decision mandates that these companies, along with Intel, now secure licenses to continue acquiring equipment for operations in China. These changes will become effective in 120 days, as specified. The Commerce Department intends to permit these companies to maintain their current facilities but restricts expansion or technological advancements.
This regulatory amendment could benefit native Chinese chipmakers and U.S. competitor Micron, while potentially straining South Korean businesses. As a ripple effect, shares of U.S. equipment makers like Lam Research, Applied Materials, and KLA saw declines. The broader context reflects heightened U.S.-China trade tensions, including delayed trade agreement finalizations.
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