The U.S. Allows Samsung and SK Hynix to Supply Chip Equipment to China in 2026

Temporary Relief for Korean Tech Giants

The U.S. government has granted an annual license to Samsung Electronics and SK Hynix to supply chip manufacturing equipment to their production facilities in China in 2026, according to two sources.

This temporary relief for South Korean companies came after the U.S. earlier this year canceled previous license exemptions for some tech companies. Washington introduced an annual approval system for exporting chip manufacturing equipment to China.

New Export Rules

Previously, Samsung, SK Hynix, and TSMC enjoyed Verified End User (VEU) status, which allowed them to supply American equipment to Chinese factories without restrictions. However, this status expires on December 31, necessitating special export licenses for further deliveries.

It is important to note that the U.S. government continues to restrict China's technological access, and the new system involves an annual review of equipment supply applications. Washington clearly indicates that it will not allow expansion or modernization of production facilities in China.

Significance for Manufacturers

For Samsung and SK Hynix, China remains a critically important production center. According to TrendForce, about 30-35% of Samsung's total NAND chip production and approximately the same proportion of SK Hynix's DRAM production occurs at Chinese facilities.

Currently, Samsung produces about 270,000 NAND wafers monthly at its Xi'an factories, while SK Hynix produces around 100,000 wafers per month in Dalian. The new approval system will allow companies to continue production, albeit with more restrictions than before.