US Plans Revoking Chip Waivers Affecting Samsung, TSMC, SK Hynix in China

The U.S. Department of Commerce is considering revoking waivers that allow major semiconductor companies, including Samsung Electronics, Taiwan Semiconductor Manufacturing Co. (TSMC), and SK Hynix, to export American chipmaking technology to their factories in China. This move, part of President Donald Trump's broader strategy to limit China's access to advanced technology, would require these firms to obtain individual export permits, potentially increasing operational costs and complicating semiconductor production in China. The decision has already affected markets, with stock declines among U.S. chip equipment manufacturers such as KLA Corp and Lam Research, as well as semiconductor companies like Nvidia and Taiwan Semiconductor. Nvidia has reported significant financial impacts due to existing export restrictions on AI chips to China, highlighting the material consequences for U.S. firms. The revocation of waivers aims to mirror China's trade controls on rare earth magnets, striving for parity in export licensing regimes, but may also strain U.S. relations with South Korea and Taiwan, who may seek diplomatic support amid ongoing trade negotiations. While chipmakers will still be able to operate in China, increased enforcement protocols will align with existing licensing requirements, signaling a tougher regulatory environment ahead.