Chip Talk > US Trade Policies Pose New Challenges for Korean Chipmakers in China
Published September 08, 2025
The United States recently proposed a significant policy change affecting Samsung and SK hynix’s operations in China. The Trump administration had previously issued waivers allowing indefinite export of chipmaking equipment to these companies’ Chinese fabs. However, with these waivers expiring at the end of the year, the Biden administration is considering the introduction of an "annual site license." According to TrendForce, this move would require Samsung and SK hynix to seek annual approval from the US for exports of restricted items essential for their chip production in China.
Both Samsung and SK hynix rely heavily on their Chinese facilities to meet global demand for memory products. It's been reported by TrendForce that around 30-35% of Samsung's NAND output and 35-40% of SK hynix's DRAM production are expected from Chinese sites by 2025. This makes China a critical hub for their operations, despite the primary production focus being on general-purpose chips rather than the latest technology like HBM.
This potential policy change could significantly affect Samsung and SK hynix's production capabilities and their competitive positioning in the semiconductor industry. The annual license proposal is seen as a response to geopolitical dynamics, aiming to curb the influence of advanced tech production in China, which includes facilities of non-Chinese firms. However, it raises concerns regarding market access and the stability of supply chains, as highlighted by sources like ETNews.
Interestingly, the US has also decided to end TSMC’s Nanjing fab’s VEU status but with a less impactful outcome given that TSMC’s Chinese operations represent a small fraction of their total capacity. The varying impacts underscore the larger strategic reliance Korean firms have on their Chinese facilities compared to their Taiwanese counterparts.
Looking ahead, the US's licensing measures could push Samsung and SK hynix to diversify their production bases or accelerate their technological transitions. On a larger scale, these actions may incite broader industry shifts, potentially heralding wider changes in the global semiconductor supply chain landscape. For detailed updates and insights, visit TrendForce.
Join the world's most advanced semiconductor IP marketplace!
It's free, and you'll get all the tools you need to discover IP, meet vendors and manage your IP workflow!
No credit card or payment details required.
Join the world's most advanced AI-powered semiconductor IP marketplace!
It's free, and you'll get all the tools you need to advertise and discover semiconductor IP, keep up-to-date with the latest semiconductor news and more!
Plus we'll send you our free weekly report on the semiconductor industry and the latest IP launches!
