US Revokes Chip Export Carve-Outs for Samsung, SK Hynix in China

The Biden administration has tightened semiconductor export controls to China, revoking special permissions granted to Samsung Electronics and SK Hynix in 2022. Both companies must now seek individual licenses for US equipment purchases intended for Chinese facilities—a MOVE signaling escalating tech trade tensions.

Intel's China authorization was similarly withdrawn, though the chipmaker had already divested its Dalian NAND memory operations earlier this year. Commerce Department officials indicated they WOULD approve licenses maintaining existing production levels but block attempts to upgrade technology or expand capacity.

Equipment suppliers KLA Corp, Lam Research, and Applied Materials saw immediate market repercussions, with shares falling between 2.4% and 4% on the announcement. The policy shift follows June warnings from WHITE House officials about contingency plans should US-China trade negotiations falter.

Current tariff arrangements remain in stasis—30% duties on Chinese imports to the US and 10% on American goods entering China—with the truce holding until at least November. The semiconductor restrictions represent the latest escalation in a multifaceted trade conflict spanning rare earth minerals, agricultural exports, and technological supremacy.