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US Grants Samsung and SK Hynix One-Year Licenses for China Chip Equipment

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CHIP

The U.S. government has issued 2026 export licenses to South Korea’s Samsung Electronics and SK Hynix, letting the two memory-chip giants keep shipping American semiconductor tools to their factories in China.

The approvals, announced Tuesday, offer temporary relief amid tightening global tech trade rules.

From Broad Exemptions to Yearly Checks

Until now, both companies along with Taiwan’s TSMC enjoyed “validated end-user” status, which largely bypassed export restrictions. That privilege expires 31 December 2025.

From 1 January 2026:

  • Every shipment of U.S. chip-making equipment to China needs individual approval
  • Licenses will be reviewed and renewed (or revoked) annually

The shift gives Washington greater control over sensitive technology flows.

Why It Matters for the Chip Industry

China hosts major production sites for legacy memory chips, where demand has exploded thanks to AI data centres pushing prices higher. Samsung and SK Hynix dominate the global memory market (No. 1 and No. 2 respectively), and their Chinese plants are critical for supply.

Broader Strategy

The Trump administration is recalibrating export policy to better protect national security while allowing limited, monitored cooperation. The yearly cycle lets officials respond faster to geopolitical changes or tech breakthroughs.

TSMC’s status for 2026 remains unclear, with more details expected soon from the Commerce Department.


READ ALSO: China Slashes Import Tariffs on Key Goods Starting January 2026

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