The U.S. government has handed Samsung Electronics Co. Ltd. an annual license to allow the South Korean technology giant to import one chipmaking equipment from the U.S. to China every year in 2026, according to two sources familiar with the matter, as reported by Reuters on Tuesday.
However, it marks a change from the previous Washington policy on the regulation of exports of sensitive semiconductors as the White House started to lift licences earlier this year, which had exemplied some firms to deliver cutting-edge equipment to China without the need for the firms to obtain special licences. However, the ‘validated end user status’ that was meant to end last year has been extended to December 31, 2025, to end the direct exports of U.S. semiconductors to China.
Under the new regime, Samsung enjoys annual licensing, which gives it temporary relief from the strict controls. The U.S. has adopted an annual approval process when it comes to the exportation of semiconductor-manufacturing equipment to China. The new system presents a more organized process than the previous one but still subjects exports to heightened review.
These approvals are going on in an overall environment where the U.S. government is trying to restrict China’s availability of top American technology, mainly when it comes to sophisticated semiconductor manufacturing equipment. It has been argued that limiting the transfer of this technology is fundamental in helping America preserve its edge.
Samsung, the global leader in the semiconductor memory business, as well as another South Korean company, SK Hynix Co. Ltd., operate a large degree of their businesses in China, especially in terms of memory chips designed for use in data centers and artificial intelligence systems. With that in mind, their reliance on advanced equipment from the United States will remain fundamental.
Neither Samsung nor SK Hynix would like to comment on the license approval. Taiwan Semiconductor Manufacturing Company (TSMC), another important beneficiary under previous waivers, could not be immediately contacted for a comment. On the other hand, the US Department of Commerce could not be contacted immediately, as it is not available to comment out of office hours.