The U.S. government has reportedly shifted its policy regarding South Korean semiconductor giants Samsung Electronics (005930.KS) and SK Hynix (000660.KS), replacing long-term waivers with a more confining annual approval system to bring chip manufacturing equipment to their facilities in China for 2026.
The prime motive behind this announcement is to provide temporary relief for the South Korean firms, following a U.S. decision earlier this year to invalidate license waivers for several tech companies.
Meanwhile, Samsung, SK Hynix (0006660.KS), and TSMC (2330.TW) have reportedly gained crucial benefits from exemptions to Washington’s sweeping limitations on chip-related exports to China.
It has been observed that Validated End-user status will end on December 31, meaning shipments of American chipmaking tools to their factories in China after that date will require U.S. export licenses.
Samsung and SK Hynix declined to comment, while TSMC did not immediately respond to requests for comment.
According to Reuters, the U.S. The Department of Commerce was not immediately available for comment outside of business hours.
U.S. President Donald Trump’s administration has been re-examining export controls that it considers too relaxed under the Biden administration, as it is keen to restrict access to advanced American technology.
South Korea’s Samsung electronics is the world’s top memory chipmaker, and second ranked SK Hynix also counts China as one of its pivotal production bases.
This is particularly true for conventional memory chips, whose prices have been increasing due to demand from AI data centers and dwindling supplies.
The recent policy shift in the U.S. will not prompt an immediate shutdown of South Korean operations in China; instead, it has successfully transitioned them into a rigorous legal structure.