- U.S. issues annual licenses to Samsung and SK Hynix for China operations.
- Waivers for chip exports to China expire on December 31, requiring licenses.
- China remains a key hub for memory chips amid rising AI-driven demand.
Two sources informed that the U.S. government has issued a yearly licence to Samsung Electronics and SK Hynix to import chip manufacturing equipment to their sites in China for 2026. The approval provides temporary relief for South Korean companies and comes after a U.S. decision earlier this year to cancel license exemptions granted to certain tech firms.
A source mentioned that Washington established the yearly approval process for exporting chipmaking equipment to China. Samsung, SK Hynix, and TSMC gained from waivers to Washington's broad limitations on chip-related exports to China. However, the benefit referred to as validated end-user status will conclude on December 31, indicating that shipments of American chipmaking equipment to their facilities in China will necessitate U.S. export licenses after that date.
Samsung and SK Hynix refused to provide comments, whereas TSMC did not respond promptly to inquiries for comment. The U.S. Department of Commerce could not be reached for comment after business hours.
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Eager to restrict China's access to sophisticated American technology, U.S. President Donald Trump's administration has been reassessing export controls that it believed were overly lenient during the Biden administration.
Samsung Electronics, the leading memory chip manufacturer globally, along with SK Hynix, its second-ranked competitor, consider China a crucial production hub, particularly for traditional memory chips, which have seen rising prices driven by demand from AI data centers and reduced supplies.