US Revokes Samsung, SK Hynix China Chip Equipment Licenses

The U.S. Commerce Department has revoked Samsung Electronics and SK Hynix's 'validated end-user' status, requiring these South Korean chipmakers to obtain licenses to send U.S. semiconductor manufacturing equipment to their Chinese plants. This move, effective 120 days after announcement, prevents the companies from expanding or upgrading their operations in China using U.S. technology, though existing equipment remains authorized. The decision aims to curb China's access to advanced semiconductor technology and redirect high-tech chip production to trusted regions like South Korea and the U.S. While Samsung and SK Hynix have significant production in China, they have planned new production primarily in South Korea, mitigating some short-term impact. The U.S. action could benefit competitors less reliant on Chinese production, such as Micron, while South Korea is working with Washington to minimize supply chain disruptions. China has expressed dissatisfaction and plans to protect its domestic firms amidst the escalating U.S.-China technology rivalry under President Donald Trump's administration.