Key Moments
- The U.S. government has issued annual licenses for Samsung Electronics (KS:005930) and SK Hynix (KS:000660) to ship U.S.-made chipmaking tools to their China plants in 2026, according to Reuters.
- A new U.S. export control regime will require yearly reviews of semiconductor equipment exports to China, replacing broader, longer-term waivers.
- SK Hynix shares gained 1.5% and Samsung shares rose nearly 1% in Seoul following the reported license approvals.
Regulatory Shift in U.S. Export Controls
Investing.com – The U.S. government has approved annual export licenses for Samsung Electronics (KS:005930) and SK Hynix (KS:000660), permitting the two firms to bring U.S.-origin semiconductor manufacturing equipment into their fabrication facilities in China in 2026, Reuters reported, citing people familiar with the matter.
These approvals come after Washington earlier this year removed broad license waivers that had previously applied to certain foreign semiconductor manufacturers operating in China. The withdrawal of those waivers marked a tightening of oversight over technology shipments tied to China’s chip sector.
New Annual Review System for Chip Tool Exports
According to the report, U.S. authorities have implemented a new framework under which export permissions for semiconductor production tools destined for China will be assessed on an annual basis. This structure replaces earlier arrangements that allowed for more extensive, less frequently reviewed authorizations.
Market Reaction
Following news of the licenses, SK Hynix shares rose 1.5%, while Samsung shares advanced nearly 1% in trading in Seoul, the report said.
End of Validated End User Status
Samsung, SK Hynix, and Taiwan Semiconductor Manufacturing Co. had previously operated under what is known as validated end user status. This designation had allowed them to avoid filing separate license applications for each shipment of U.S. chipmaking equipment.
Reuters reported that this validated end user status is scheduled to end on Dec. 31. Once it expires, any new shipments of U.S. semiconductor tools to their facilities in China will need specific, case-by-case approval from U.S. authorities.
Strategic Importance of China Operations
Samsung and SK Hynix are described in the report as being heavily dependent on their Chinese manufacturing bases for the production of memory chips used in artificial intelligence data centers.
Key Data Points
| Company | Exchange Symbol | Development | Share Price Reaction (Seoul) |
|---|---|---|---|
| Samsung Electronics | KS:005930 | Received annual U.S. license for 2026 chip tool shipments to China | Rose nearly 1% |
| SK Hynix | KS:000660 | Received annual U.S. license for 2026 chip tool shipments to China | Climbed 1.5% |
| Taiwan Semiconductor Manufacturing Co. | Not specified in report | Previously held validated end user status set to expire Dec. 31 | Not specified in report |
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