The U.S. is back again with its moves against China as part of the ongoing trade war, this time making it harder for Samsung, Intel, and SK hynix to keep making chips there. The U.S. government has announced [PDF] via the US Federal Register that it is removing special permissions that let these companies export American chipmaking tools without individual licenses to their factories in China. Now, it would be a stricter case-by-case approval system that will start 120 days after the rule is formally published, and is scheduled for September 2, 2025.
The U.S. Department of Commerce"s Bureau of Industry and Security (BIS) is revoking the "Validated End-User" program, which had exempted these companies" China fabs from the many export license steps otherwise required as part of the 2022 chip controls. The rule applies to Intel"s Dalian unit, Samsung China Semiconductor, and SK hynix"s China subsidiaries. Samsung and SK hynix both rely on their Chinese fabs for a large share of global memory output. Intel sold its Dalian NAND plant to SK hynix earlier, but still has semiconductor wafer operations that run through 2025. Any U.S. tools for these operations will now require individual licenses.
These new rules expand on the 2022 export controls put on by the United States to curb China"s access to advanced chipmaking technology. The move could reduce sales for U.S. semiconductor equipment makers such as Applied Materials, Lam Research, and KLA Corp. Local Chinese tool vendors such as Micron are likely to benefit from this change and can fill the supply gap.
The U.S. government also recently announced an $8.9 billion investment to acquire a 10% ownership stake in Intel. This was via a conversion of government grants through the CHIPS and Science Act and other programs into common shares of Intel stock, in an attempt to fuel domestic chip-making and making sure Intel remains a key player in its home turf.