The U.S. has provided a temporary approval for tool shipments to China, offering relief to South Korean chipmakers. This follows Washington’s decision earlier this year to revoke certain license waivers for tech exports.
The new approval system applies to exports of advanced chipmaking tools. It allows companies like Samsung, SK Hynix, and TSMC to continue sending tools to Chinese factories for now. Without this approval, U.S. export licenses would be required after December 31.
Previously, Samsung and SK Hynix benefited from a “validated end user” status. This privilege exempted them from some of Washington’s strict chip export restrictions. With the status ending, tool shipments to China will now need official U.S. authorization.
Samsung and SK Hynix declined to comment on the update. TSMC did not respond immediately to requests for comment. The U.S. Department of Commerce was also unavailable for comment outside regular business hours.
The temporary approval is part of broader U.S. efforts to limit China’s access to advanced technology. The Trump administration began re-examining export controls that it viewed as too relaxed under the Biden administration. These rules specifically target tools used in producing high-tech chips.
South Korea’s Samsung Electronics, the world’s largest memory chipmaker, and SK Hynix, the second largest, rely on China for production. Chinese factories are important for manufacturing traditional memory chips. Prices for these chips have risen due to growing AI data center demand and limited supply.
Industry analysts say the temporary approval will help maintain production continuity in China. However, after December 31, companies will face stricter regulations for tool shipments. This could impact supply chains and chip production costs for South Korean firms.
The situation highlights ongoing tensions between the U.S., China, and global tech companies. How companies adapt to the evolving export rules will affect the global semiconductor market in the coming year.
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