Samsung and SK hynix are allowed to export chip production equipment from the US to China

Samsung and SK hynix will be granted an indefinite license to ship American chip production equipment to their Chinese factories, despite United States export restrictions. South Korea announced this on Monday.

With the new license, the United States authorizes South Korean companies to supply certain American chip production equipment to their chip factories in China, even if they are subject to US sanctions. The one-year exemption that both companies already had was about to expire. The US has now informed the two companies of its decision, writes Reuters news agency.

Under that decision, both companies will be added to a list of verified end-users. This allows them to import American chip production equipment to their Chinese factories without having to request permission for each individual delivery. SK hynix says it welcomes the decision of the US government. “Through close cooperation with the relevant authorities, the uncertainties regarding the operation of our semiconductor production lines in China have been significantly removed,” Samsung said in a statement.

Certain American production equipment is subject to export restrictions that the administration of US President Joe Biden introduced last year. As a result, advanced chip production equipment cannot simply be exported to China if it incorporates American technology. These restrictions are intended to prevent such equipment from falling into the hands of Chinese chip companies, such as chip manufacturer SMIC or memory maker YMTC, but also apply to foreign companies that own factories in China. Samsung and SK hynix already had a one-year exemption, but now have it for an indefinite period.