US moves to revoke chip waivers for Samsung, SK Hynix, and TSMC operations in China
Jun 20, 2025
Key Points
- US Commerce Department intends to revoke blanket waivers allowing Samsung, SK Hynix, and TSMC to ship American chipmaking equipment to China without individual licenses.
- The move forces the three chipmakers to seek approval for each equipment shipment, significantly increasing licensing burden and mirroring China's rare earth export controls.
- The action undermines a fragile US-China trade truce agreed to earlier this month, risking diplomatic friction with South Korea and Taiwan.
Summary
The US Commerce Department is moving to revoke blanket waivers that allow Samsung, SK Hynix, and TSMC to ship American chipmaking equipment to their China operations without individual licenses. Jeffrey Kessler, head of the Commerce Department unit overseeing export controls, told the three companies this week that he intends to cancel those waivers as part of the Trump administration's stated crackdown on critical US technology flowing to China.
Today, the three chipmakers can move American equipment such as CNC machines and other manufacturing tools into their Chinese factories without applying for a separate license each time. Revoking those waivers would force them to seek individual approval for each shipment, mirroring how China controls rare earth material exports. The move would be both diplomatically and economically disruptive, potentially straining relations with South Korea and Taiwan, whose companies would be most affected.
The timing complicates the geopolitical picture. The US and China agreed to a fragile trade truce in London earlier this month that included each country holding off on introducing new export controls designed to hurt the other. This action appears to test or undermine that agreement. White House officials frame the move as creating parity—ensuring the US has an equal and reciprocal process for semiconductor trade. The substance suggests otherwise. It tightens restrictions on allied chipmakers' access to American technology in China, which will cascade into broader supply chain friction. Companies will still be able to operate in China under the new regime, but the licensing burden will increase significantly.