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The Trump administration has imposed new restrictions on U.S. tech companies operating in China, particularly affecting South Korean memory manufacturers like Samsung, SK hynix, and Intel. These firms are no longer allowed to ship new U.S.-made equipment to Chinese production facilities due to the revocation of previously issued waivers under the Biden administration.
According to a Bloomberg report, these companies have 120 days to find alternative solutions before their current exemptions expire. This decision is aimed at reducing China’s advantage in semiconductor manufacturing, as its facilities produce about 10% of computer memory and 15% of storage chips globally. The relaxation under the Biden era primarily targeted South Korean manufacturers due to their extensive production lines in China.
The U.S. Commerce Department stated: “The Trump administration is committed to closing export control loopholes—particularly those that put U.S. companies at a competitive disadvantage. Today’s decision is an important step towards fulfilling this commitment.” – Under Secretary of Commerce Jeffrey Kessler
This move could force both Samsung and SK hynix to either relocate their Chinese facilities or downgrade their production technology, impacting ongoing tariff negotiations between the U.S. and South Korea. The restriction appears aimed at providing leverage in trade talks.
The decision is likely to create tensions in U.S.-China trade discussions, as it may hinder future negotiations by escalating hostilities.
