The U.S. has approved a license allowing South Korean chipmakers Samsung Electronics (SSNLF) and SK Hynix to ship chipmaking equipment to their factories in China through 2026, according to people familiar with the matter. SK Hynix is a major supplier of memory chips used in AI systems, including those from Nvidia (NVDA).
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The approval follows Washington’s decision earlier this year to roll back broad waivers and move to tighter export controls. Under the new system, chipmakers must now seek approval on a yearly basis to send U.S.-made tools into China.
Why This Licence Matters
Until now, Samsung, SK Hynix, and Taiwan Semiconductor Manufacturing Company, or TSMC (TSM) could ship U.S. chip tools to China without applying for individual licenses. That exemption ends on December 31. After that, any shipment of American chip equipment to China will require approval from Washington.
For Samsung and SK Hynix, the timing is important. China remains a key base for producing memory chips, especially older models that are now in strong demand due to AI data centers and tight supply. With memory prices rising, keeping these plants running smoothly has become more critical.
The move also reflects President Donald Trump’s push to limit China’s access to advanced U.S. technology, while avoiding major disruption to global chip supply. For now, the license offers relief—but the shift to annual reviews signals closer oversight ahead.
Wall Street’s Take on Key Chip Stocks
Using the TipRanks’ AI Comparison Tool, let’s look at Wall Street’s ratings for some of the chip stocks.
