Washington: The United States has tightened export restrictions on semiconductor manufacturing equipment for South Korea's SK Hynix and Samsung, as well as for Intel, in a move aimed at limiting China’s access to advanced chip technology. The U.S. Department of Commerce announced that the companies will no longer benefit from previously granted authorizations and will now need individual licenses to obtain semiconductor equipment for operations in China. The new regulations are set to take effect in 120 days.

The policy change allows existing chip manufacturing operations in China to continue under the new licensing system but bars approval for any capacity expansion or technological upgrades. SK Hynix operates major DRAM and NAND flash memory production facilities in Wuxi and Dalian, while Samsung manufactures around 40 percent of its NAND flash chips at its Xi’an plant. Intel, which sold its Dalian NAND memory facility to SK Hynix, continues wafer production there through 2025.

U.S. equipment suppliers such as KLA Corp, Lam Research, and Applied Materials are expected to see reduced sales in China due to these restrictions. Meanwhile, domestic Chinese equipment manufacturers may benefit from the reduced access of foreign firms. U.S.-based chipmaker Micron could also gain a competitive advantage in the memory chip sector.

This move forms part of the broader U.S. strategy to limit China’s technological and military advancements by restricting access to advanced semiconductor technologies. The policy follows a series of export controls introduced since 2022 aimed at curbing China’s semiconductor capabilities.

In response, South Korea is engaging with U.S. officials to mitigate the impact of the policy, emphasizing the global importance of Korean chipmakers in maintaining supply chain stability. The implementation of these restrictions is expected to have significant implications for global semiconductor markets and international trade relations.