The US Department of Commerce is considering revoking authorizations granted to global semiconductor manufacturers Samsung, SK Hynix, and TSMC, which allow them to use US technology and products in their factories in China. This move could make it harder for these companies to operate in the Chinese market, according to sources familiar with the matter who spoke to Reuters.
Currently, the likelihood of the US withdrawing these authorizations is uncertain. However, if such a decision is made, it would further restrict foreign semiconductor manufacturers’ operations in China. These factories play a crucial role in producing chips used across various industries.
A White House official stated that there is no immediate plan to implement these measures and that the step is a contingency in case the trade truce between the US and China fails. The official also confirmed that the agreement on rare earth materials shipments from China to the US remains in effect.
Following the news, shares of US semiconductor equipment manufacturers declined. For example, KLA Corp fell by 2.4%, Lam Research by 1.9%, and Applied Materials by 2%. Meanwhile, shares of Micron, a major competitor to Samsung and Hynix in the memory chip sector, rose by 1.5%.
Samsung and Hynix have not yet commented on the issue. TSMC and other companies also declined to respond.
It is worth noting that after the US imposed broad restrictions on semiconductor equipment sales to China in October 2022, Samsung and Hynix received special licenses allowing them to continue importing certain goods under conditions. In 2023 and 2024, these companies were granted “Validated End User” status, enabling them to receive US products more easily and quickly.
The Department of Commerce stated that semiconductor manufacturers will continue operating in China, but new measures will align with the licensing requirements applied to other semiconductor companies exporting to China.
Industry sources say that making it harder for US semiconductor companies to export technology to China would give a significant advantage to domestic Chinese competitors. One source called this situation a “gift to China’s local companies.”
