Tweet
The Trump administration just rolled out fresh US chip restrictions targeting three of the world’s biggest chipmakers. Samsung, TSMC, and SK Hynix are losing their “validated end user” status that allowed them to import US chipmaking equipment to their China facilities without individual licenses. The move takes effect December 31 for TSMC and within 120 days for the Korean companies.
The so-called “validated end user” or VEU status was basically a fast pass for these companies. Instead of applying for individual export licenses every time they needed American chipmaking equipment for their China plants, they could import it automatically. Now they’ll have to go through the regular licensing process, which can take months.
According to the official Federal Register document, the Commerce Department’s Bureau of Industry and Security removed Intel Semiconductor (Dalian) Ltd, Samsung China Semiconductor Co. Ltd, and SK hynix Semiconductor (China) Ltd from the program. Commerce Secretary Jeffrey Kessler said the Trump administration is “committed to closing export control loopholes” that put US companies at a competitive disadvantage.
The move isn’t exactly targeting these companies specifically. As reported by CNBC, this appears to be more about limiting China’s semiconductor advancement than punishing Samsung or TSMC. The new US chip restrictions prevent these facilities from expanding capacity or upgrading technology, which directly impacts China’s chip manufacturing ambitions.
The Irony of Timing
Here’s where it gets weird. While Washington is making it harder for these companies to operate in China, it’s simultaneously throwing billions at them to build US facilities. TSMC just announced a massive $100 billion investment in Arizona this year, bringing their total US commitment to $165 billion. Samsung secured $4.75 billion in CHIPS Act subsidies for a $37 billion Texas plant. SK Hynix got nearly $1 billion to build facilities in Indiana.
The timing seems deliberate. These new US chip restrictions come as the Trump administration pushes its “America First” manufacturing agenda. By making China operations more difficult while offering huge subsidies for US production, Washington is essentially forcing these companies to choose sides.
The post New US Chip Restrictions Hit Samsung, TSMC, and SK Hynix China Operations appeared first on Phandroid.
More...
The so-called “validated end user” or VEU status was basically a fast pass for these companies. Instead of applying for individual export licenses every time they needed American chipmaking equipment for their China plants, they could import it automatically. Now they’ll have to go through the regular licensing process, which can take months.
According to the official Federal Register document, the Commerce Department’s Bureau of Industry and Security removed Intel Semiconductor (Dalian) Ltd, Samsung China Semiconductor Co. Ltd, and SK hynix Semiconductor (China) Ltd from the program. Commerce Secretary Jeffrey Kessler said the Trump administration is “committed to closing export control loopholes” that put US companies at a competitive disadvantage.
The move isn’t exactly targeting these companies specifically. As reported by CNBC, this appears to be more about limiting China’s semiconductor advancement than punishing Samsung or TSMC. The new US chip restrictions prevent these facilities from expanding capacity or upgrading technology, which directly impacts China’s chip manufacturing ambitions.
The Irony of Timing
Here’s where it gets weird. While Washington is making it harder for these companies to operate in China, it’s simultaneously throwing billions at them to build US facilities. TSMC just announced a massive $100 billion investment in Arizona this year, bringing their total US commitment to $165 billion. Samsung secured $4.75 billion in CHIPS Act subsidies for a $37 billion Texas plant. SK Hynix got nearly $1 billion to build facilities in Indiana.
The timing seems deliberate. These new US chip restrictions come as the Trump administration pushes its “America First” manufacturing agenda. By making China operations more difficult while offering huge subsidies for US production, Washington is essentially forcing these companies to choose sides.
The post New US Chip Restrictions Hit Samsung, TSMC, and SK Hynix China Operations appeared first on Phandroid.
More...
