U.S. exports of goods manufactured in China cease for Intel, Samsung, and SK Hynix
The U.S. Federal Register has published a significant decision that revokes exemptions for Intel Dalian, SK Hynix, and Samsung, potentially reshaping the global semiconductor industry. This move was made by the Bureau of Industry and Security (BIS) of the Department of Commerce (Docket No. 250825-0144).
The revocation of these exemptions could create competitive disadvantages for the affected companies, Intel, Samsung, and SK Hynix, in their chip fabrication operations in China. For instance, Samsung, known for its well-established semiconductor fabrication plant in Austin, Texas, USA, may face challenges in its operations in Xi'an, China.
Similarly, SK Hynix, which operates a memory chip plant in Wuxi, China, and plans to invest nearly $3.9 billion in a chip fabrication plant in Indiana, may be impacted by this decision. However, the exact details of SK Hynix's U.S. plant remain less defined, as the name of the factory has not been clearly specified in the available sources.
It is important to note that this revocation does not apply to Intel Chengdu, as the company was granted a special exemption by the U.S. government to equip its own fabs. Intel also has a fab in Dalian, which produced flash memory, but the future of this facility is unclear following the revocation of the exemptions.
The U.S. government's tightened export restrictions on chip manufacturing equipment to China are part of a broader strategy to protect American competitiveness in this critical industry. Jeffrey I. Kessler, the Secretary of the U.S. Department of Commerce, justified the revocation of the exemptions to "close loopholes in export control - especially those that lead to competitive disadvantages for U.S. companies."
This decision comes after the U.S. Department of Commerce under the Trump administration revoked export licenses issued by the previous administration. The U.S. government under Joe Biden has continued this policy, aiming to safeguard American interests in the global semiconductor market.
Meanwhile, Samsung is not only expanding its operations in the U.S., but also in Texas, with plans to build another chip fabrication plant in Taylor. This move, along with Intel's existing fab in Chengdu since 2003 and Samsung's plant in Austin, underscores the strategic importance of the U.S. market for these global players.
However, the new machinery and equipment from the U.S. cannot be shipped to China by Intel, Samsung, and SK Hynix starting January 1, 2026. This restriction is part of the broader export control measures aimed at enhancing American competitiveness in the global chip market.
As these developments unfold, the semiconductor industry is poised for significant changes, with the U.S. government's decisions potentially reshaping the global landscape of chip manufacturing.
