Samsung gets yearly US approval to send chipmaking equipment to China according to source

Samsung Secures Annual U.S. Licence for China Chip Operations

Samsung Electronics has obtained a crucial annual export licence from the United States government that allows it to continue shipping chipmaking equipment to its semiconductor facilities in China throughout 2026, according to a person familiar with the matter.

The approval, based on a shift in Washington’s export control framework, ensures that Samsung can keep importing essential U.S.-origin manufacturing tools needed to operate and maintain its Chinese memory chip plants. It replaces a previous, more flexible system of exemptions that expires at the end of this year.

From Waivers to Annual Licences

For several years, Samsung and other major Asian chipmakers operating in China benefited from so‑called “validated end user” status, a waiver that allowed their Chinese fabs to receive U.S.-controlled semiconductor tools without securing individual export licences for every shipment.

That arrangement is now ending. Under the revised rules, U.S. authorities are moving to a tighter regime in which exports of chipmaking tools to foreign‑owned fabs in China are covered by **annual licences** that must be renewed each calendar year. The new approval for Samsung is part of that system and applies to shipments through 2026.

The change reflects Washington’s broader effort to increase oversight of advanced technology exports to China while still allowing key global chip suppliers to keep existing production lines running.

Impact on Samsung’s China Chip Facilities

Samsung operates major memory chip manufacturing sites in China that play a significant role in global supply, particularly for NAND flash used in smartphones, data centres and various consumer electronics.

The annual licence allows Samsung to:

• Continue importing critical U.S.-made tools to support **ongoing manufacturing** and **equipment maintenance** at its Chinese fabs.
• Avoid disruptive delays that would occur if it had to seek approval for each individual shipment.
• Maintain production stability at a time of rising demand for memory, driven in part by growth in cloud computing and artificial intelligence workloads.

However, the approval is understood to be focused on sustaining current operations rather than enabling large‑scale technology upgrades or capacity expansions that could significantly enhance the capabilities of the Chinese plants.

Restrictions Still Aim to Curb China’s Advanced Chipmaking

Although Samsung’s licence offers short‑term relief, U.S. export controls remain designed to limit China’s access to the most advanced semiconductor manufacturing technologies.

Even before the new annual framework, the most sensitive tools—such as extreme ultraviolet (EUV) lithography systems used for cutting‑edge logic chips—were already effectively off‑limits for use in China. The updated rules retain that stance, meaning Samsung’s Chinese facilities are expected to remain focused on more mature memory production nodes rather than the latest generation of high‑performance chips.

Annual Renewals Introduce Policy Uncertainty

The shift from open‑ended waivers to yearly approvals introduces a new layer of uncertainty for Samsung and other chipmakers with large investments in China.

Each renewal will give U.S. policymakers an opportunity to reconsider conditions or tighten restrictions, depending on the geopolitical climate, national security assessments and ongoing technology competition with China.

For Samsung, that means its China production strategy must now factor in the risk that future licences could come with stricter terms—or, in a worst‑case scenario, be withheld altogether. Such an outcome could force the company to reroute equipment to other countries or accelerate diversification of its manufacturing footprint.

Broader Industry and Geopolitical Implications

Samsung’s approval is part of a wider recalibration of the semiconductor supply chain as governments seek greater control over critical technologies. The new licensing model is expected to have several broader effects:

• Pressure on equipment suppliers: U.S. toolmakers that sell etch, deposition and inspection systems into Chinese fabs face a more unpredictable demand environment, as licences are reviewed annually.
• Strategic balancing by chipmakers: Companies like Samsung must balance their reliance on existing Chinese capacity with ongoing investments in fabs in South Korea, the United States and other locations.
• Continued oversight of mature nodes: Even though many China‑based lines produce older‑generation chips, Washington is signalling that it wants visibility into—and leverage over—those operations too.

For now, the annual licence granted to Samsung secures the smooth operation of its Chinese memory fabs into 2026, helping stabilise global supply at a time when demand for storage and memory remains elevated. But the move also underscores how deeply semiconductor production has become intertwined with geopolitical decision‑making, and how companies must now navigate export policy as carefully as technology roadmaps and market cycles.

Samsung’s approval is part of a wider recalibration of the semiconductor supply chain as governments seek greater control over critical technologies. The new licensing model is expected to have several broader effects:

Samsung’s approval is part of a wider recalibration of the semiconductor supply chain as governments seek greater control over critical technologies. The new licensing model is expected to have several broader effects: