Samsung's semiconductor factory in Xi'an, China. Yonhap News. 

The U.S. Donald Trump administration plans to require case-by-case licenses for supplying U.S.-made semiconductor equipment to the factories of Samsung Electronics and SK Hynix in China.

According to the U.S. Federal Register on the 29th (local time), the U.S. Department of Commerce announced that it would abolish the general license that allowed global semiconductor manufacturers such as Samsung Electronics, SK Hynix, and Intel to supply U.S.-made semiconductor manufacturing equipment to their production facilities in China without needing to obtain individual licenses.

Consequently, Samsung Electronics and SK Hynix will need to obtain approval from the U.S. government on a case-by-case basis for any future supply of U.S. semiconductor production equipment to their semiconductor factories in China.

The U.S. Federal Register stated that such measures will take effect 120 days after the publication date in the Federal Register (the 29th, U.S. Eastern Time).

It is anticipated that this could lead to a significant contraction in the production activities of Korean semiconductor companies in China.

Previously, in October 2022, during the Biden administration, the U.S. Department of Commerce prohibited U.S. companies from exporting semiconductor equipment to Chinese semiconductor manufacturers to prevent China from acquiring semiconductor technology. For multinational companies operating factories in China, case-by-case licensing was required.

However, certain companies, including Samsung Electronics and SK Hynix, were designated as "Verified End Users" (VEU) under U.S. export control regulations, allowing them to supply U.S.-made equipment without separate licensing procedures or time limitations.

Nevertheless, in the current Federal Register announcement, the U.S. Department of Commerce has decided to remove the Chinese factories of Samsung, SK Hynix, and Intel from the VEU list.

Yonhap News