US Restricts China Chip Access

The US government is set to revoke waivers that previously allowed certain Chinese operations of Intel, Samsung, and SK Hynix to utilise US technology. This action restricts China's access to advanced chipmaking knowledge.

The revoked waivers permitted these companies to import American-made semiconductor equipment into their Chinese facilities. Without these waivers, these companies must now obtain individual licenses for each export, complicating supply chains and potentially increasing costs. The US aims to maintain its competitive edge in the global semiconductor industry and prevent China from becoming a major player.

This decision is expected to heighten tensions between the US and China, impacting global semiconductor firms and markets. The move is part of a broader US strategy to control the diffusion of sensitive technologies and curb China's technological advancements in key areas like AI, 5G, and defence.