Consideration of revoking the rights granted to Samsung, SK Hynix, and TSMC to export semiconductor manufacturing technology to China
Semiconductor manufacturers such as Samsung, SK Hynix, and TSMC have obtained the right to export U.S. semiconductor manufacturing technology to China to manufacture semiconductors in their factories, and use machines equipped with that technology in their factories. However, it has been revealed that Commerce Department officials are considering revoking this right.
Exclusive | US Prepares Action Targeting Allies' Chip Plants in China - WSJ
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https://www.bloomberg.com/news/articles/2025-06-20/chip-stocks-slide-on-report-of-new-possible-limits-on-china
US may stop global chipmakers' access to American tech in China
https://www.cnbc.com/2025/06/20/chip-stocks-china.html
South Korea's Samsung and SK Hynix, as well as Taiwan's TSMC, have received blanket exemptions to export semiconductor manufacturing machinery containing American technology to Chinese factories, meaning the manufacturers don't have to apply for licenses each time.
According to the Wall Street Journal, Jeffrey Kessler, head of the Commerce Department's export control division, has told the three companies he wants to revoke those exemptions, as part of the Trump administration's crackdown on critical American technology to keep it from ending up in China.
A Commerce Department spokesman said: 'The semiconductor manufacturer will be able to continue operations in China. The new semiconductor enforcement regime mirrors the licensing requirements for other semiconductor companies exporting to China and ensures that the United States has a fair and reciprocal process.'
Industry insiders explained that the move would not immediately lead to factories in China being closed, but that efficient operation may become more difficult. They also warned that manufacturers may seek case-by-case licenses or consider switching from American-made machinery to Japanese or European-made equipment.
The measure is still under consideration, and while Kessler's Bureau of Industry and Security is in favor, the Department of Defense and others are opposed. Opponents have expressed concern that it could 'help support Chinese companies and lead to Chinese control of factories.'
Recently, NVIDIA and AMD have been required by the U.S. government to obtain new licenses to export products to China, which has resulted in large expenses being incurred.
The U.S. government demanded a license to sell NVIDIA's AI chip 'H20' to China, and NVIDIA recorded $5.5 billion in related expenses - GIGAZINE
in Hardware, Posted by logc_nt