US Considers Revoking Chipmaker Authorizations in China

The U.S. Department of Commerce is contemplating the revocation of authorizations for major chipmakers like Samsung and TSMC, affecting their ability to acquire U.S. technology for Chinese plants. Although the revocation isn't confirmed, it's being considered as a strategic measure should trade tensions rise.

The U.S. Department of Commerce is reportedly considering revoking authorizations granted to prominent chipmakers such as Samsung, TSMC, and SK Hynix. This move would impose new challenges on these companies in acquiring U.S. goods and technology for operations in China, affecting their semiconductor production capabilities.

While there's no definitive plan to act on these revocations, the possibility remains as a diplomatic tool, according to a White House official. This action is intended as a backup measure should the existing trade agreement between the U.S. and China deteriorate, thereby safeguarding U.S. interests in the volatile sector.

The speculation has already impacted the market, with shares of American chip equipment manufacturers like KLA Corp and Lam Research dropping. The Department of Commerce emphasizes that chipmakers will still be able to operate in China, highlighting enhanced enforcement protocols aligning with existing semiconductor export licenses.

(With inputs from agencies.)