U.S. Tightens Controls on Chip Production in China

The U.S. government is increasing restrictions on global chipmakers, including Samsung, SK Hynix, and Intel, by revoking their permissions to buy American semiconductor equipment in China. Previously granted exemptions allowed these companies to produce chips despite broad restrictions introduced in 2022. They now require new licenses.

The United States is set to impose stricter measures on international chipmakers such as Samsung, SK Hynix, and Intel by revoking their authorization to purchase American semiconductor manufacturing equipment in China. This development, noted in the Federal Register, marks a significant shift in policy.

Previously, these companies had received exceptions from the U.S. Commerce Department to a comprehensive ban on selling semiconductor equipment to China, enacted in 2022. This allowance facilitated the manufacturing of chips in China.

However, going forward, these companies will need to secure licenses to procure this essential equipment in China, intensifying the challenges they face in the region's highly competitive tech sector.

(With inputs from agencies.)