On , the U.S. Commerce Department moved to revoke prior authorizations that let Samsung and SK Hynix ship American chipmaking equipment to their factories in China, meaning both companies will soon need case-by-case licenses—tightening export controls and potentially straining U.S.–South Korea trade ties.
Key Takeaways
- The Commerce Department will rescind authorizations that allowed Samsung and SK Hynix to supply U.S.-origin semiconductor tools to Chinese facilities without new reviews.
- A 120-day transition period applies; afterward, equipment shipments will require individual licenses.
- Waivers granted in 2023 under the Biden administration will effectively lapse for the two firms.
- Commerce said it aims to close gaps in export controls as Washington restricts China’s access to advanced semiconductor technology.
- Analysts warn the move could hinder top-tier memory output at Chinese plants, potentially disadvantaging Samsung and SK Hynix versus rivals less exposed to China.
- President Trump has also threatened a 100% tariff on foreign semiconductors; exemptions for U.S.-based investments are expected but not finalized.
- The shift comes as a federal court recently invalidated many of Mr. Trump’s tariffs and as he met South Korea’s President Lee Jae Myung; no public outcomes were released.
- Both Samsung and SK Hynix are investing heavily in U.S. production, which could influence any tariff carve-outs.
Verified Facts
The Commerce Department said Friday it would revoke authorizations that previously let Samsung and SK Hynix ship critical semiconductor manufacturing equipment to their China-based fabs without seeking fresh approvals. After a 120-day effective period, any such shipments will require licenses issued by the Trump administration on a case-by-case basis.
The action narrows waivers granted in 2023 that followed sweeping U.S. export controls unveiled in 2022 to curb China’s access to advanced chips and tools. The policy targets two of South Korea’s most consequential technology firms, both vital to global memory supply.
Jeffrey Kessler, under secretary of commerce for industry and security, said the administration intends to eliminate loopholes in export controls, signaling tighter scrutiny of equipment flows to China.
Samsung declined to comment. SK Hynix spokesperson Yixi Lee said the company will stay in close contact with the Korean and U.S. governments and take steps to limit business disruption.
Policy Timeline
| Year | Action |
|---|---|
| 2022 | U.S. imposes broad export controls restricting China’s access to advanced chips and manufacturing tools. |
| 2023 | Waivers allow Samsung and SK Hynix to continue supplying U.S.-origin equipment to Chinese fabs. |
| 2025 | Commerce revokes those authorizations; licenses will be required after a 120-day window. |
Context & Impact
Memory makers sit at the center of the U.S.–China technology contest. Samsung and SK Hynix dominate the global DRAM and NAND markets that underpin artificial intelligence systems used by firms such as OpenAI in the United States and ByteDance and DeepSeek in China.
According to Lian Jye Su of research firm Omdia, restricting access to the latest manufacturing equipment at Chinese facilities could dent output of higher-end memory, narrowing the firms’ competitiveness versus peers like Micron that depend less on China-based production.
The action lands as the White House floats a 100% tariff on foreign semiconductors—an additional variable for a supply chain that is globally intertwined. While companies building in the United States could be exempted, final terms have not been published, and any broad tariff would add uncertainty to pricing and sourcing decisions across the industry.
Diplomatically, the move risks friction with Seoul just as President Trump and South Korea’s President Lee Jae Myung discussed ongoing trade negotiations earlier this week. With parts of Mr. Trump’s tariffs recently struck down by a federal court, both sides face a fluid policy landscape.
Official Statements
We intend to close export-control loopholes and tighten implementation.
Jeffrey Kessler, U.S. under secretary of commerce for industry and security
We will maintain close communication with Korean and U.S. authorities and take necessary measures to minimize any impact on our operations.
Yixi Lee, spokesperson, SK Hynix
Samsung declined to comment.
Unconfirmed
- Which specific license applications will be approved or denied, and under what criteria, has not been disclosed.
- Details and timing of any exemptions from a potential 100% semiconductor tariff for firms investing in U.S. fabs are not finalized.
- The extent of the federal court’s invalidation of prior tariffs and which measures remain in force were not detailed in official summaries available for this report.
- No public documents set out outcomes from the Trump–Lee meeting; any commitments remain unpublished.
Bottom Line
Washington’s revocation of waivers forces Samsung and SK Hynix onto a tighter licensing track for their China operations, raising costs and timelines for equipment upgrades and potentially affecting high-end memory output. Watch for how fast Commerce processes licenses, whether tariff policy hardens or softens, and how Seoul and the companies recalibrate investments between China and the United States.