US Approves Chip Exports as China Tightens Control

The US government has granted Samsung Electronics and SK Hynix an annual license allowing them to ship semiconductor manufacturing equipment to their facilities in China in 2026. The decision offers temporary relief to the South Korean tech giants after Washington earlier this year moved to tighten rules and cancel long-standing exemptions previously enjoyed by select companies. According to sources familiar with the matter, the license eases uncertainty created by the US decision to end so-called “validated end-user” status, which had allowed certain firms to bypass stricter export controls on American technology bound for China.

Exemptions End, Licenses Required, Export Controls Tighten Washington has confirmed the introduction of a yearly approval process for exporting chipmaking equipment to China. Once existing exemptions expire on December 31, Samsung, SK Hynix, and TSMC will be required to obtain individual US export licenses for shipments of American semiconductor tools to their China-based operations. Representatives of the companies declined to comment, while the US Department of Commerce was unavailable for immediate response. Sources say the administration of President Donald Trump is reassessing export policies it views as overly permissive under the previous administration, placing greater emphasis on limiting China’s access to advanced US technologies.

China Pushes Back With Domestic Equipment Mandates At the same time, reports indicate that Beijing is increasing pressure on chipmakers operating in China to use domestically developed equipment for at least 50% of their tools when applying for approval to build or expand production facilities. The move is part of a broader effort to establish a self-reliant semiconductor supply chain. Although the requirement has not yet been formally codified, multiple sources say Chinese authorities have already begun communicating the expectation during approval processes. Manufacturers are reportedly required to demonstrate through procurement bids that at least half of their equipment originates from domestic suppliers.

The Ultimate Goal: Full Self-Reliance Industry insiders say applications that fail to meet the threshold are often rejected, though regulators may show flexibility if domestic supply constraints arise. The rules are currently looser for the most advanced chip production lines, where Chinese-made equipment has yet to fully match foreign alternatives. “Fifty percent is only an interim step. Ultimately, officials want factories to rely entirely on homegrown equipment,” one source said, speaking on condition of anonymity. This direction aligns with repeated calls from Chinese President Xi for technological independence. Thousands of engineers and scientists are now working across state-backed and private firms, as well as research centers nationwide, to accelerate the development of a fully domestic semiconductor ecosystem.

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