U.S. Tightens Grip on Chipmaking: New Licensing Rules Impact Samsung and SK Hynix

The United States has taken steps to hamper Samsung and SK Hynix's chip production capabilities in China by revoking authorizations that allowed them to receive American-made semiconductor equipment. This move, disclosed via the Federal Register, requires the companies to obtain new licenses under the U.S. Commerce Department's 2022 restrictions on selling U.S. semiconductor equipment to China.

Other companies, including Intel, are also affected by the policy change, with the revocations slated to take effect in 120 days. While existing operations will continue under license, expansions or tech upgrades in China are uncertain. South Korea plans to stay engaged with Washington to mitigate the impact.

The Commerce Department's policy shift could inadvertently favor Chinese equipment makers and U.S. competitor, Micron. Beijing opposes this move, vowing to protect Chinese enterprises' interests. The situation adds complexity to U.S.-China trade relations, already strained by existing tariffs.

(With inputs from agencies.)