The United States is canceling important permits that permitted chip manufacturers Samsung and SK Hynix to bring American semiconductor production equipment into China, intensifying attempts to restrict Beijing’s access to sophisticated chipmaking technology.
The action, outlined in a Federal Register notice, indicates that the South Korean firms must now secure separate licenses to import U.S. chipmaking equipment into their factories in China. The modification of the rule will be implemented in 120 days.
Intel was also listed among the firms losing their authorization. Nonetheless, the U.S. company completed the sale of its manufacturing unit in Dalian, China, earlier this year.
No growth, no enhancements.
The U.S. Commerce Department announced it will issue licenses for Samsung and SK Hynix to maintain their current operations, but has no plans to approve permits for capacity expansion or upgrading to newer technology.
The companies had earlier gained from exemptions to broad export restrictions implemented in 2022. These regulations were created to prevent China from obtaining sophisticated chip manufacturing equipment due to national security issues.
South Korea resists advances.
SK Hynix stated it will collaborate closely with the governments of both the U.S. and South Korea to reduce business interruptions.
