The United States has revoked authorizations that allowed South Korean chipmaking giants Samsung and SK Hynix to freely receive advanced American semiconductor manufacturing equipment for their facilities in China. According to a notice in the Federal Register, the companies will now be required to obtain individual licenses to purchase this equipment, significantly tightening the sweeping restrictions initially imposed in 2022. The revocation, which also included Intel—though the company had already sold its relevant China unit—will take effect in 120 days.
In a statement, the U.S. Commerce Department clarified its intent to grant licenses that allow the companies to maintain their existing facilities in China but stated it “does not intend to grant licenses to expand capacity or upgrade technology.” This move effectively freezes the technological development and growth potential of these major foreign-operated chip factories within China, aiming to curb the country’s advancement in cutting-edge semiconductors.
The decision has drawn strong reactions from the affected companies and governments. SK Hynix stated it would take necessary measures to minimize the impact on its business, while South Korea’s industry ministry emphasized it had explained to Washington the importance of these operations for global supply chain stability and vowed to continue discussions. China’s commerce ministry opposed the move, pledging to “safeguard the legitimate rights and interests of enterprises.”
The policy change is also expected to negatively impact major U.S. semiconductor equipment manufacturers, including KLA Corp, Lam Research, and Applied Materials, by reducing their sales to these key customers in China. The revocations mark a significant escalation in the U.S. campaign to limit China’s access to advanced chipmaking technology, directly targeting the operations of even its closest allies’ companies on Chinese soil.
