The United States government is making a big change that will affect how major chip companies operate in China. Soon, it will be tougher for giants like South Korea’s Samsung and SK Hynix, along with America’s Intel, to produce their chips there. This move comes as the government plans to cancel existing permits that allow companies to sell US-made chip manufacturing tools to facilities in China.
This new policy overturns a previous system. Back in 2022, the US Department of Commerce had issued special waivers. These waivers allowed companies to use American-made equipment for chip production in China, even though there were already restrictions on selling such tools to the country. The upcoming change will end these exceptions.
News agency Reuters points out that this shift in licensing rules will likely cut down on chip equipment sales to China. Companies like Lam Research and Applied Materials, both key US equipment makers, will feel this impact directly. It means less of their specialized machinery will enter the Chinese market.
However, Reuters also suggests some interesting outcomes. This new US policy might actually help Chinese companies that make similar machinery. They could step in to fill the gaps left by US competitors. On the flip side, the move could also benefit Micron, another US chip manufacturer, in an unexpected way. The new rules are set to begin within 120 days, according to information from the Federal Register.