Samsung, SK Hynix, and Intel Restricted from Utilizing U.S. Technologies in China, Impacting access to the Largest Chip Market Globally

Major South Korean Memory Manufacturers Face US Restrictions on Equipment for Chinese Facilities

Recent developments reveal a significant shift in trade dynamics between the United States and China, particularly concerning memory manufacturers from South Korea. Following increasing skepticism from the Trump administration regarding US operations in China, new restrictions have emerged that potentially limit these firms’ ability to source vital equipment from US suppliers for their Chinese fabrication plants.

Reportedly, South Korean memory manufacturers are under a strict deadline of 120 days to secure alternative supply routes, with existing waivers set to expire. The Biden administration had previously relaxed certain restrictions, focusing mainly on South Korean companies like Samsung and We Hynix, which operate substantial production lines responsible for DRAM and NAND chips in China. According to Bernstein, this decision carries significant implications, as Chinese facilities contribute approximately 10% of global computer memory output and 15% of storage chips.

“The Trump administration is committed to closing export control loopholes—particularly those that put US companies at a competitive disadvantage. Today’s decision is an important step towards fulfilling this commitment.”- Under Secretary of Commerce Jeffrey Kessler

This policy change occurs amid active trade negotiations between US and South Korean delegations, suggesting a strategic maneuver to cultivate leverage during discussions. The initial focus on South Korean manufacturers indicates a targeted effort to reshape trade relations, particularly in the semiconductor industry.

The ramifications of these restrictions may extend beyond individual companies, potentially complicating US-China trade relations. Given the existing tensions, these new measures could create additional barriers in ongoing negotiations, which might affect the semiconductor supply chain and global technology markets.

As the situation develops, stakeholders across the tech industry will be monitoring how these policy changes impact production capabilities and international trade dynamics. For a more detailed overview, you can read the full report here.