A Samsung and SK Hynix chip fabrication plant in China, now affected by the US waiver revocation.
Introduction New chapter of technological war Samsung Hynix China waiver
In August 2025, the Trump administration took a historic decision and revoked the special waiver (waiver) given to South Korean chipmakers Samsung Electronics and SK Hynix to use US semiconductor equipment in China. Also, they aim the move at limiting China’s access to advanced technology and protecting US national security interests. And this decision is going to have a profound impact on the global semiconductor supply chain, international trade relations and the battle for technological supremacy. In this article, we will analyze every aspect of this decision in detail.
Historical background Birth and purpose of the wavier
2022 sanctions policy The US imposed restrictions on the supply of advanced semiconductor equipment to China to limit China’s military and technological capabilities. Also VEU (Validated End-User) status In 2023, the Biden administration granted Samsung and SK Hynix the status of Validated End-User, allowing them to import US equipment without repeated licenses. But this step was taken to keep the global supply chain stable and balance relations with allies like South Korea. Also Trump administration change: In August 2025, the US Department of Commerce repealed this exemption, making it mandatory for companies to obtain a license for every equipment import
Mechanism of new rules 120 days adaptation period
License mandatory and companies will have to obtain individual licenses for US equipment imports. Also the scope of restrictions but existing facilities will be allowed to continue operating. Also there will be a ban on adding new capacity or technical upgrades. And in the 120-day time frame, companies have 120 days to adapt to this new rule, after which the licensing regime will come into effect. Also the impact on companies production capacity and global supply which Samsung Electronics and China have presence in two NAND flash memory plants in Xi’an, which produce 35-40% of global output. Risk Limited access to advanced equipment may increase production costs and stop technological updates.
Talking about Samsung Hynix China waiver
Presence in China DRAM chip production unit in Wuxi which produces 40% of global output. And NAND flash production unit in Dalian which produces 20% of global output. Also the risk of disruption in relations with US equipment suppliers as well as other affected units which are Intel Semiconductor but Intel has sold this unit to SK Hynix. Still it was included in the revocation list. Also the impact on the global supply chain which is the shortage of memory chips. These companies’ plants in China produce 10% of global DRAM and 15% of NAND. Their being affected can disrupt the supply of products like smartphones laptops and AI hardware.
Price rise Due to reduced supply, prices of memory chips are likely to increase. And loss to US equipment manufacturers Companies like KLA Corp Lam Research and Applied Materials will suffer revenue loss, as China accounts for a large part of their sales. Also, the shares of these companies have already seen a decline in the stock market.
Political and economic reactions
The Commerce Ministry’s statement strongly condemned the US move and called it a threat to the global supply chain and warned of retaliatory measures. China said it would take necessary steps, which could include a ban on exports of rare earth metals. But South Korea’s response, which was government intervention, was that the Ministry of Industry said it would continue to have dialogue with the US to protect the interests of companies that are a concern of the global supply chain: South Korea made the US aware of the importance of the stability of the global semiconductor supply chain. Along with the US argument that the move would limit China’s military and technological advancement, it would also be a matter of national security. The US believes that the move would limit China’s military and technological advancement. Fair competition. Protecting US companies from competitive disadvantage because earlier exemptions benefited foreign companies.
Table Summary of impact on major companies
Company Production share in China Key risks Potential strategy Samsung 35-40% of NAND Limited access to advanced technology New plants in India/Vietnam SK Hynix 40% of DRAM 20% of NAND Cost increase Expansion in US/South Korea 10-15% of US equipment maker revenues Loss in sales Finding new markets in India/Europe Conclusion Emergence of a new global technological order Also, this move by the US is not just a trade policy but a strategic move in the battle for technological supremacy. It will force countries around the world to reevaluate their supply chains and move towards technological self-reliance. This is a golden opportunity for countries like India as they can emerge as the new global hub of semiconductor manufacturing. The geo-economics of chips and rare earths could become the world’s most important strategic battleground in the coming years.
Conclusion: Samsung Hynix China waiver
US makes it harder for SK Hynix Samsung to make chips in China Gizmochina Samsung and SK Hynix caught in new US-China chip restriction Kedglo bal Samsung, SK Hynix lose US waiver on chip equipment for China use Newsweek Trump Administration Restricts Samsung Chipmaking in China Bloomberg Trump Administration Removes China Tech Waivers Korea JoongAng Daily U.S. cuts off Samsung and SK’s Chinese plants from importing chipmaking tools Businesstoday US Revokes Samsung, SK Hynix Chip Equipment Exemptions In China Korea Herald: Samsung SK hynix brace for fallout from loss of US waiver Financial Express China condemns US move to revoke semiconductor waivers.
About the Author
