Samsung, SK Hynix Get US Nod for China Chip Plants

News Desk 

Seoul: The United States has approved annual licences allowing Samsung Electronics and SK Hynix to ship chipmaking equipment to their manufacturing facilities in China through 2026, sources familiar with the matter said on Tuesday.

The decision offers temporary relief to the South Korean semiconductor giants following Washington’s move earlier this year to revoke broad licence waivers previously granted to certain technology firms operating in China.

According to one of the sources, the US government has introduced an annual approval system for exports of semiconductor manufacturing tools to China, replacing the earlier exemption-based framework.

Samsung, SK Hynix and Taiwan Semiconductor Manufacturing Company (TSMC) had previously benefited from validated end user (VEU) status, which allowed them to receive US-made chipmaking equipment for their China-based factories without seeking individual export licences.

However, that status is set to expire on December 31, after which shipments of American chipmaking tools to China will require explicit US export approvals.

Samsung and SK Hynix declined to comment on the development, while TSMC did not immediately respond to requests for comment. The US Department of Commerce was also unavailable for comment outside regular business hours.

The move comes as the administration of US President Donald Trump continues to re-examine export controls it believes were too lenient under the previous administration, as part of broader efforts to restrict China’s access to advanced American technology.

China remains a critical manufacturing base for both Samsung and SK Hynix, particularly for traditional memory chips, demand for which has surged due to the rapid expansion of AI data centres and tightening global supply.