Samsung, SK Hynix get US approval to ship chipmaking tools to China in 2026

The US government has granted annual licenses to Korean semiconductor giants Samsung Electronics and SK Hynix to import chip manufacturing equipment to their facilities in China for 2026. Reuters It was reported Tuesday, citing two people with knowledge of the development.

The approval provides vital but temporary relief to South Korean companies and follows the US decision earlier this year to revoke licensing exemptions previously granted to certain technology firms.

One of the sources told Reuters He said Washington has introduced an annual approval system for exports of chip-making tools to China.

Samsung and SK Hynix will soon need export licenses

Samsung, SK Hynix and TSMC had benefited from special exemptions from Washington’s sweeping restrictions on exports of chip-related technologies to China. These exemptions allowed them to buy American chipmaking equipment in their factories in China without obtaining separate approvals each time.

However, this special privilege, known as verified end user status, will expire on December 31. From now on, shipping American chip-making tools to companies’ facilities in China will require export licenses from the U.S. government, creating more regulatory hurdles for firms.

Restricting China’s access to advanced American technology

According to Reuters, the administration of US President Donald Trump is re-examining export controls that it believes were loosened too much during the Biden administration, in order to limit China’s access to advanced American technology.

South Korea’s Samsung Electronics, the world’s leading memory chip maker, and SK Hynix, the second largest, rely heavily on China as one of their key manufacturing bases, especially for conventional memory chips.

The news stated that these chips have seen sharp price increases in recent months, largely due to demand from artificial intelligence data centers and tightening global supply.

Contrary to the restrictions, in early December, US President Donald Trump announced that his administration would allow the sale of Nvidia’s second most advanced artificial intelligence chip to China. He added that the US would receive a 25 percent fee on such sales, while AMD and Intel would receive permission to sell similar chips there.

But the decision was met with harsh criticism from conservatives and Democratic lawmakers in China, who expressed concerns that Beijing could use the technology to strengthen its military and ultimately bankrupt and replace Nvidia. Reuters It was previously reported.