The United States moved on Aug 29, 2025 to revoke authorizations that had allowed Samsung and SK Hynix to receive U.S. chipmaking equipment for their China facilities, shifting the firms to a licensing regime within 120 days and curbing capacity expansions and technology upgrades.
Key Takeaways
- Authorizations that let Samsung and SK Hynix obtain U.S. semiconductor tools for use in China are being revoked, per a Federal Register filing.
- New export licenses will be required after a 120-day transition period.
- The Commerce Department says it plans to approve licenses needed to keep existing facilities running but does not intend to allow expansion or technology upgrades.
- Intel was listed among firms losing authorization; it sold its Dalian, China, unit in a deal finalized earlier in 2025.
- Validated End User (VEU) status for foreign chipmakers in China will be removed, adding compliance steps.
- U.S. toolmakers KLA, Lam Research, and Applied Materials are likely to see reduced China sales; shares fell 2.8%–4.4%.
- Seoul urged Washington to preserve stable operations in China; Beijing opposed the move and signaled it may respond.
- Analysts say Chinese equipment suppliers and Micron could benefit if Korean rivals are constrained.
Verified Facts
According to the Federal Register notice, the U.S. is revoking prior permissions that exempted Samsung Electronics and SK Hynix from parts of the 2022 export controls on advanced semiconductor equipment destined for China. The change takes effect in 120 days from the posting date.
The Commerce Department stated it plans to grant licenses that allow ongoing operations at existing facilities, while indicating it does not intend to grant licenses that would expand capacity or enable technology upgrades at those sites.
Intel was included among companies losing authorization, though the company completed the sale of its Dalian, China, unit earlier this year. The filing signals that, going forward, covered shipments will require case-by-case licensing.
U.S. equipment makers are expected to be affected. Shares fell on the news: Lam Research (-4.4%), Applied Materials (-2.9%), and KLA (-2.8%). The companies did not immediately comment.
| Company | Role | Reported impact |
|---|---|---|
| Samsung Electronics | Memory/chipmaker with China fabs | Waivers revoked; must seek licenses; expansion/upgrade licenses not intended |
| SK Hynix | Memory maker with China fabs | Same as above; says it will work with Seoul and Washington |
| Intel | U.S. chipmaker | Listed in revocations; sold Dalian unit in 2025 |
| KLA, Lam Research, Applied Materials | U.S. tool vendors | China sales likely lower; shares down 2.8%–4.4% |
Context & Impact
In June, U.S. officials signaled the revocations were possible, describing the move as groundwork in case trade talks faltered. In July, Washington and Seoul announced a tariff deal in principle, but South Korean President Lee Jae Myung and U.S. President Donald Trump did not finalize it in writing at their summit. For now, a tariff truce remains in place, with 30% U.S. tariffs on Chinese imports and 10% Chinese duties on U.S. goods locked in until November.
For Samsung and SK Hynix, the shift to licensing raises operational friction and reduces flexibility for future node transitions in China. The Commerce Department’s stance suggests routine maintenance and continuity shipments may be approved, but capacity additions and equipment upgrades face a high bar.
The policy could open room for Chinese equipment vendors to replace some U.S. tools, particularly where domestic alternatives exist, and may marginally improve the competitive position of Micron in memory if Korean rivals are constrained in China. Separately, thousands of U.S. export license applications to China—covering billions of dollars in chip equipment—have been stuck in a backlog in recent months.
Official Statements
We plan to grant license applications needed to keep existing facilities operating in China, but do not intend to approve expansion or technology upgrades.
U.S. Department of Commerce
We will maintain close communication with both the Korean and U.S. governments and take necessary measures to minimize business impact.
SK Hynix
We have conveyed the importance of stable operations by our semiconductor firms in China for the global supply chain and will continue discussions with the United States.
South Korea Ministry of Trade, Industry and Energy
We oppose the U.S. move and will take necessary measures to safeguard the legitimate rights and interests of enterprises.
Ministry of Commerce, People’s Republic of China
Unconfirmed
- Which specific license applications for Samsung and SK Hynix will be approved, and on what timelines, remains unclear.
- The precise scope of tools that may be treated as maintenance versus upgrade or expansion has not been detailed publicly.
- Whether the provisional U.S.–South Korea tariff understanding will be finalized before the November truce deadline is uncertain.
Bottom Line
The U.S. is tightening control over advanced chipmaking in China by moving Samsung and SK Hynix from blanket waivers to case-by-case licenses within 120 days. Expect continued operations at existing fabs but meaningful headwinds for capacity growth and technology upgrades in China.
If approvals are narrow and backlogs persist, U.S. toolmakers could see weaker China demand, while Chinese vendors and Micron may gain relative ground. Diplomatic talks in the coming weeks will shape how disruptive the shift becomes.