us tightens chip supply to china: samsung and hynix face annual approval
Washington, D.C., Tuesday, 9 September 2025.
the united states is changing its export policy. samsung and sk hynix will now require annual approvals for their china-based factories. previously, these companies operated under indefinite licenses. this shift introduces potential disruptions. it may impact their ability to meet production targets. the move signals an ongoing effort by the us to control technology transfer. it also aims to limit china’s access to advanced semiconductors. the decision has sparked concern about potential delays and market uncertainty.
Annual approvals replace indefinite licenses
The U.S. government is proposing annual approvals for chipmaking supplies exported to Samsung Electronics and SK Hynix factories in China [7]. This replaces the previous system of indefinite authorizations, known as validated end user (VEU) designations [7]. These VEU designations, which allowed the companies to ship semiconductor tools and materials to their Chinese plants with prior security and regulatory commitments, are set to expire at the end of this year [1][7]. The new proposal from the U.S. Commerce Department was presented to Korean officials last week [7].
Potential impact on stock performance
The shift to annual approvals introduces uncertainty for Samsung (005930:KS) and SK Hynix (000660:KS) [7]. It raises concerns about potential delays in chip production [1]. These delays could impact the companies’ ability to meet market demands [1]. Industry experts suggest that increased administrative burdens could negatively affect stock performance [1]. Investors should monitor the approval process closely. Any significant delays could lead to decreased production and lower revenue forecasts [GPT].
Geopolitical context and market reaction
The U.S. move is viewed as a continuation of efforts to curb China’s advancements in semiconductors and artificial intelligence [1]. Since 2022, both the Biden and Trump administrations have expanded export controls targeting China [1]. This decision follows the revocation of Biden-era waivers that previously eased shipments for these companies [7]. The timing is noteworthy, occurring shortly after South Korean President Lee Jae Myung’s defense and investment agreement with former President Donald Trump [1]. The South Korean industry and government express mixed reactions, acknowledging the continuation of a framework but showing concern about the administrative burden [1].
Navigating the new regulatory landscape
Samsung and SK Hynix must now navigate a more complex regulatory landscape [1]. They will need to apply for U.S. approval annually for specific quantities of restricted equipment [1]. While the U.S. government claims this ensures operational continuity, the added审批程序 could create bottlenecks [1]. Investors should closely watch how these companies manage the new approval process. Efficient management and proactive communication with regulators will be essential. This is key to minimizing disruptions and maintaining investor confidence [GPT].