A U.S. official has informed leading global semiconductor companies, including Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing, of plans to cancel waivers allowing them to use American technology in China. This move is expected to make it more challenging for foreign chipmakers to operate their plants in China.
Following this news, shares of U.S. chip equipment makers that supply chipmaking plants in China experienced declines. Applied Materials, Inc. saw its stock fall by 3.8% in response to the reported regulatory action.
The Commerce Department stated that chipmakers will still be able to operate in China, but new enforcement mechanisms will mirror existing licensing requirements for other semiconductor companies exporting to China. This development signals an escalation in U.S. export controls, creating increased uncertainty for companies with significant operations in the region.
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