Samsung and SK Hynix secure US licenses to operate chip factories in China for another year

South Korean semiconductor giants Samsung Electronics and SK The measure, confirmed through annual licenses, ensures the continuity of operations at a time of increasing technological restrictions imposed by Washington to Pequim.

This decision represents a strategic relief for the two largest memory chip manufacturers in the world, which have substantial investments and a significant portion of their production located in Chinese territory. The annual licenses replace a previous regime of broader exemptions, which expired at the end of 2025, establishing a new model of periodic supervision.

The approval allows companies to maintain their production lines for essential components, such as DRAM and NAND memories, without immediate interruptions. Esses chips are fundamental to a wide range of electronics, from smartphones and computers to the servers that power the growing demand for artificial intelligence.

Changes to American export rules

The US government’s new policy marks a transition from a system of long-term exemptions, known as validated end-user status, to a model of annual approvals. Essa amendment reflects a more rigorous and controlled approach to the transfer of sensitive technology to China, requiring companies to request renewal of their permits periodically to continue receiving US-origin equipment.

For companies like Samsung and SK Hynix, this change imposes a new level of uncertainty in long-term planning, although approval for next year provides immediate operational stability. The annual assessment will allow U.S. officials to closely monitor activity at the factories and adjust permits as the geopolitical landscape and national security concerns evolve.

Importance of operations in China for South Korean companies

The operations of Samsung Electronics and SK Essas factories specialize in manufacturing traditional memory chips, such as DRAM and NAND, which, despite being more mature technologies, continue to have massive demand in the global market. The strategic location of these units allows us to efficiently serve Asian markets, which are among the largest consumers of electronic components. Recentemente, the explosion of artificial intelligence has further driven demand for these components, as data centers require increasing volumes of memory for data processing. The production capacity at China is, therefore, crucial for South Korean companies to be able to meet this demand and maintain their market leadership, complementing the production of more advanced technologies in their factories at Coreia and Sul.

Context of American restrictions on semiconductors

Since 2022, Washington has been implementing a series of export controls with the clear objective of limiting China’s technological development, especially in areas considered strategic, such as artificial intelligence, supercomputing and military applications.

These restrictions directly affect the supply of chipmaking tools and equipment, a sector dominated by US companies such as Applied Materials, Lam Research and KLA. Sem access to these technologies, China’s ability to produce advanced semiconductors is severely compromised.

The annual licenses granted to allied companies, such as South Korean ones, act as a controlled release valve, designed to prevent a collapse in the global supply chain, while maintaining pressure on Chinese technological advancement.

Global demand for memory chips

The semiconductor sector is experiencing a period of strong growth, driven mainly by the expansion of infrastructure for artificial intelligence. Grandes data centers require enormous amounts of high-performance memory, which has significantly increased the prices of components such as DRAM and HBM (High Bandwidth Memory).

This high demand scenario directly benefits Samsung and SK Hynix, which not only lead the traditional memory market but are also the leading HBM suppliers for AI accelerators. Continuing your operations at China is vital to capitalizing on this market opportunity.

Position of the companies involved

Both Samsung Electronics and SK Hynix chose not to publicly comment on the approval of the licenses. Da Likewise, Departamento of Comércio of Estados Unidos, responsible for issuing authorizations, did not issue an immediate official statement on the matter, maintaining discretion over the details of the evaluation process.

Recent developments in export policies

The decision to implement a system of annual licenses was preceded by the revocation, in August 2025, of broader exemptions that benefited foreign companies operating in China. Essa initial measure generated a period of uncertainty in the industry, raising concerns about possible stoppages.

The annual approval mechanism emerged as a middle ground solution, seeking to balance U.S. national security interests with the need for global supply chain stability. Approval for the following period confirms the practical application of this new regulatory model.

As a result, affected companies are accelerating their geographic diversification plans. Investimentos in new factories outside of China, especially in Estados Unidos and Europa, gained priority as a way to mitigate future regulatory and geopolitical risks.

This long-term strategy aims to reduce dependence on a single country and align operations with the interests of allied governments, strengthening the resilience of the production chain in the face of an increasingly complex and fragmented global scenario.

Outlook for the sector

The memory market is expected to continue its growth trajectory, supported by strong demand from the AI, cloud computing and mobile device sectors. Maintaining prices at high levels tends to support the profit margins of South Korean manufacturers.

However, the need to annually renew export licenses for China introduces an element of constant surveillance. Companies will need to carefully navigate between the productive efficiency of their Chinese factories and compliance with an ever-changing regulatory environment dictated by geopolitical tensions.