The U.S. government on Tuesday approved an annual license for Korean semiconductor companies Samsung Electronics and SK Hynix to import chip-making equipment to their Chinese facilities in 2026, according to Reuters, citing two sources familiar with the matter.
The approval provides short-term relief for the South Korean firms, following Washington’s move to withdraw license waivers previously extended to some tech companies earlier this year.
A source told Reuters that Washington has implemented an annual approval system for exporting chipmaking equipment to China.
Samsung, SK Hynix, and TSMC previously received special waivers from Washington’s broad curbs on exporting chip-related technology to China. Under these exemptions, they were able to obtain U.S. chipmaking equipment for their Chinese plants without needing to secure individual approvals for each shipment.
However, this special status, called validated end-user status, is set to expire on December 31. Following that date, all deliveries of U.S. chipmaking equipment to the companies’ plants in China will need export licenses from Washington, imposing additional regulatory barriers on the firms.
Aiming to restrict China’s access to advanced U.S. technology, the Trump administration has been reviewing export controls it considered too weak under the Biden administration.
South Korea’s Samsung Electronics, the world’s largest memory chipmaker, and SK Hynix depend heavily on China for conventional memory chips.
Prices for these chips have surged in recent months, mainly due to strong demand from AI data centers and constrained global supply.
Despite existing restrictions, earlier in December, U.S. President Donald Trump stated that his administration would permit the sale of Nvidia’s second-most advanced AI chip to China.
He further noted that a 25% fee would be imposed on such transactions and confirmed that AMD and Intel would also be authorized to sell comparable chips in the Chinese market.
METAL WORLD | Pakistan Steel Producers Urge FBR to Regulate Chinese Imports
