US May Tighten Chip Supply Rules for Samsung, SK Hynix, and TSMC in China
Washington mulls revoking special export waivers amid rising tech tensions with Beijing
Potential Policy Shift Targets Major Asian Chipmakers
The United States is weighing new restrictions that could significantly impact how Samsung, SK Hynix, and TSMC operate within China, as part of a broader effort to curb Beijing’s access to advanced semiconductors.
- The U.S. Department of Commerce is reportedly considering revoking the special licenses these firms hold, which currently allow them to import U.S. technology and components to their Chinese operations.
- If implemented, the move would align with existing policies barring direct exports of advanced chips from American firms like Nvidia to Chinese clients.
Why It Matters: Critical Operations at Risk
Samsung and other foreign chipmakers have maintained a unique position within the ongoing tech war—able to operate in China despite existing sanctions.
- Samsung’s Xi’an NAND flash facility is a crucial global hub, producing roughly 40% of the company’s NAND memory chips. The firm invested $25.8 billion in this plant, emphasizing its strategic value.
- The South Korean tech giant also runs a chip packaging plant in Suzhou, essential to final-stage semiconductor production.
TSMC and SK Hynix Also Exposed
TSMC’s Chinese presence, though focused on less advanced chipmaking, could also be jeopardized.
- Its Shanghai fab manufactures chips using 28nm and older nodes, supporting Chinese industries like automotive and mobile.
- The Nanjing plant, which produces 16nm and 28nm chips, caters to mid-tier smartphone and computing sectors in China.
Meanwhile, SK Hynix operates facilities that also depend on U.S.-origin technology, placing it at similar risk.
Decision Not Yet Final
A White House official emphasized that the proposal is not finalized and remains under review as a potential bargaining tool in ongoing trade negotiations with China.
- A Commerce Department spokesperson added that foreign chipmakers could still operate in China but may require a license review process for continued access to U.S.-sourced technologies.
Broader Implications
This potential revocation signals a further escalation in the U.S.–China tech conflict, highlighting the increasingly strategic importance of semiconductor supply chains. As Washington continues to leverage its tech dominance, companies like Samsung, SK Hynix, and TSMC may find themselves caught in the middle of geopolitics and commerce.
