Catenaa, Friday, August 29, 2025- The US will make it more difficult for global chipmakers Intel, Samsung, and SK Hynix to produce chips in China by revoking permission for the companies to receive American semiconductor manufacturing equipment.
The US Commerce Department granted the authorizations for the companies to make chips in China as exceptions to sweeping restrictions on the sale of semiconductor equipment to China in 2022.
The companies will now need to obtain licenses to buy the equipment in China.
The licensing change is likely to reduce sales to China by US equipment makers KLA Corp, Lam Research, and Applied Materials. The move may help domestic Chinese equipment makers, whose tools can fill gaps.
They also may help Micron, a major US competitor to South Korea’s Samsung and SK Hynix in the memory chip sector. The authorizations will not take effect for 120 days, as stated in the posting.
Intel sold its Dalian NAND memory manufacturing facility in China to Seoul-based SK Hynix several years ago, but continued to manufacture wafers into 2025.
Industry analysts warn that curbing equipment exports to foreign chipmakers in China could inadvertently benefit Chinese semiconductor firms by reducing competition.
Shares of Intel were marginally up by 0.06% on Friday morning following the news, while shares of KLA Corp fell by 1.6%, Lam Research by 2.3%, and Applied Materials by 1.4%.
The Intel stock is up by over 24% so far in the year.
