The U.S. government has approved annual licenses for Samsung Electronics and SK Hynix to import advanced semiconductor manufacturing equipment into their Chinese facilities through 2026, according to sources familiar with the matter. This decision comes as a critical relief for the South Korean tech giants, whose China-based operations account for significant portions of their memory chip production.
The new annual approval system replaces previous open-ended waivers, reflecting Washington's evolving strategy to balance technological competition with global supply chain stability. The move follows the expiration of validated end-user privileges on December 31, 2025, which previously allowed unrestricted equipment imports.
Industry analysts note that maintaining production in China remains vital for meeting global demand for traditional memory chips, particularly from AI data centers experiencing surging needs. Memory chip prices have risen 18% this quarter due to supply constraints and increased manufacturing complexity.
While the licenses prevent immediate disruption, they introduce new compliance layers for companies navigating U.S.-China tech tensions. The Trump administration continues to review export control measures, characterizing this as a "managed competition" approach to semiconductor leadership.
SK Hynix operates DRAM production lines in Wuxi while Samsung maintains NAND flash facilities in Xi'an, collectively representing 40% of global memory chip output. Both companies declined to comment on operational adjustments required under the new licensing regime.
