The Commerce Department revoked waivers that allowed Samsung Electronics and SK Hynix to import American chipmaking equipment to their Chinese facilities without individual licenses, according to a Federal Register notice published Friday. The decision forces both Korean memory giants to seek fresh approvals within 120 days or risk operational disruption.
Samsung and SK Hynix stocks declined Monday, with Samsung falling more than 2% and SK Hynix dropping over 4% as investors assessed the potential impact on production. The companies operate significant memory manufacturing operations in China, with Samsung producing about 35-40% of its NAND flash memory at its Xi’an facility, while SK Hynix manufactures roughly 40% of its DRAM in Wuxi and 20% of NAND chips in Dalian.
The revocation extends beyond the Korean companies to include Intel, though the American chipmaker sold its Dalian China unit earlier this year. Since SK Hynix acquired Intel’s Dalian subsidiary, the measure primarily targets Korean semiconductor operations.
SK Hynix stated it will “maintain close communication with both Korean and the US governments and take necessary measures to minimise the impact on our business”, while Samsung declined to comment. The Commerce Department indicated it would approve licenses for existing facility operations but not for capacity expansions or technology upgrades.
Industry sources suggest the restrictions could delay equipment procurement by three to nine months, potentially forcing long-term production shifts back to South Korea.
