Overview

• Jeffrey Kessler, head of export controls at the Commerce Department, informed Samsung Electronics, SK hynix and TSMC this week of his intention to cancel their waivers, according to The Wall Street Journal.
• The waivers have allowed the South Korean firms to import advanced U.S. lithography and etching machines for operations in China without applying for individual export licenses.
• The Biden administration had previously designated the companies as verified end users to ease their licensing requirements under earlier semiconductor export controls.
• Samsung runs NAND flash memory production in Xian and packaging in Suzhou, while SK hynix operates DRAM and flash facilities in Wuxi, Chongqing and Dalian.
• U.S. officials view the revocation as a key step in the Trump administration’s effort to curb the transfer of critical semiconductor technology to China in escalating tech and trade tensions.