The US approves Samsung Electronics and SK Hynix to bring American-made chipmaking equipment into their manufacturing facilities in China throughout 2026.
This move offers temporary relief for the tech giants after the U.S. revoked broad export waivers that previously let them import such tools without case-by-case approval. Under new rules, shipments to China will now require explicit government authorisation each year.
why care if the US approves?
Until now, Samsung, SK Hynix and Taiwan’s TSMC had benefited from “validated end user” status, which let them bring in U.S. semiconductor tools without needing individual licences. That status is set to expire on December 31, and under the new system introduced by Washington, companies must get annual approval for these exports.
For Samsung and SK Hynix, China is a key production hub, especially for traditional memory chips. Those chips have seen strong demand from artificial intelligence data centres and tightening supplies, making uninterrupted operations in China important for global chip supply.
Officials say the annual licence approach maintains a degree of certainty for them while still giving the U.S. government more control over what technology leaves the country. It avoids the more disruptive possibility of having to apply for individual licences for every piece of equipment shipped to China.
Tech Policy Balancing Act
Even after the US approves Samsung, we must remember that this is part of a broader U.S. strategy to tighten export controls and limit China’s access to advanced American technology, especially where national security concerns are involved. The Trump administration has been reviewing and adjusting export rules it viewed as too lenient under the previous administration.
At the same time, Washington also appears to be trying to strike a balance. Samsung and SK Hynix still depend on their China facilities to produce large volumes of memory chips for everything from data centres to consumer electronics. Restricting access too sharply could disrupt global supply chains at a time when demand remains high.
Market Reaction
You’d think after the US approves Samsung, the market and stocks have been shaken. But really the initial market reaction was moderate, with both Samsung and SK Hynix stocks and shares rising modestly in Seoul trading. The annual licence system gives industry players some clarity for early 2026, but companies that export equipment to China will now need to budget time and resources for annual license renewals.
Both CompaniesF have declined to comment publicly, and the U.S. Department of Commerce did not immediately respond outside business hours. Analysts say that while the annual licences ease concerns about short-term disruptions, the bigger story remains how export controls will shape the long-term semiconductor supply chain, especially amid continued geopolitical tension between the U.S. and China.
What Comes Next
With the new system in place, the industry will be watching:
- Whether annual licence approvals become standard under U.S. policy.
- If similar annual renewals apply to other countries and companies.
- How China responds in terms of its own chip industry support and technology self-sufficiency efforts.
Even after the US approves Samsung, SK Hynix and Samsung can keep their China operations supplied with the tools they need for another year, but this development underscores an evolving and complex era in global semiconductor geopolitics.
