U.S. May Revoke Chipmakers’ China Waivers, Rattling Semiconductor Stocks

Semiconductor stocks slumped after U.S. officials warned Taiwan's TSMC, South Korea's Samsung, and SK Hynix could lose critical export waivers permitting use of American chipmaking equipment in China. TSMC's U.S.-listed shares fell 2.5%, while the Philadelphia Semiconductor Index dropped 2% amid supply chain disruption fears.

Commerce Department undersecretary Jeffrey Kessler notified the chipmakers their exemptions might be rescinded—a move that WOULD cripple advanced semiconductor production in China. Equipment suppliers Applied Materials and ASML Holdings declined 4% and 1.9% respectively as the news reverberated through the sector.

The Biden administration framed the potential policy shift as reciprocity enforcement, claiming it mirrors China's export controls on rare-earth materials. Officials emphasized the action wasn't designed to escalate trade tensions, though the timing coincides with delicate U.S.-China trade negotiations.