❓WHAT HAPPENED: The Trump administration has revoked special authorizations for foreign chipmakers in China, requiring licenses for access to American semiconductor manufacturing equipment.
👤WHO WAS INVOLVED: South Korea’s Samsung and SK Hynix, Intel, and U.S. equipment suppliers like KLA Corp., Lam Research, and Applied Materials.
📍WHEN & WHERE: The new restrictions were announced recently and will take effect in 120 days, applying to operations in China.
🎯IMPACT: The decision could benefit U.S. semiconductor firms like Micron and Intel.
The Trump White House has tightened export restrictions on foreign chipmakers operating in China, revoking special authorizations that previously allowed South Korea’s Samsung and SK Hynix to access American semiconductor manufacturing equipment without individual licenses. The move was announced in a Federal Register notice and ends exemptions granted in 2022 when sweeping limits on U.S. technology sales to China were first imposed.
Under the new rules, companies will now need licenses to obtain U.S. equipment for their Chinese facilities. Intel also appeared on the list of firms losing authorization, though it sold its Dalian facility in China earlier this year. The Commerce Department stated that licenses would be approved to maintain existing operations, but would not cover expansions or technology upgrades.
U.S. equipment suppliers like KLA Corp., Lam Research, and Applied Materials are the most likely domestic companies to be impacted by the new export restrictions, which could limit their sales to China. Shares of Lam Research fell by four percent, Applied Materials dropped 2.8 percent, and KLA slipped 2.4 percent on the news.
The restrictions come amid ongoing trade tensions between the U.S. and China, with both nations still operating under a tariff truce set to last until November. Notably, South Korea’s Samsung and SK Hynix—both reliant on Chinese semiconductor facilities—had previously benefited from a Validated End User status, which streamlined equipment shipments from U.S. suppliers. With the designation now revoked, the companies must operate under the same licensing rules as other foreign firms.
The revocations will not take effect for 120 days, giving businesses time to adjust.
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