What the US approved
The United States has granted annual (one-year) licenses for 2026 that allow Samsung Electronics and SK Hynix to bring US-controlled chipmaking equipment into their manufacturing facilities in China, according to Reuters sources.
Separately, TSMC confirmed it received an annual license covering its Nanjing facility, saying the approval “ensures uninterrupted fab operations and product deliveries” and removes the need for individual vendor licenses for covered equipment.
A shift from waivers to annual renewals
The change matters as much as the approvals themselves. Reuters reported the licenses replace the prior “validated end-user” style privileges that had allowed these firms to receive certain controlled items under a broader exemption framework—set to expire on December 31, 2025—moving the system toward case-by-case annual approvals instead of standing waivers. Reuters +1
In practical terms, the licenses reduce the risk of sudden operational disruption at major foreign-owned fabs in China, but they also introduce a recurring policy checkpoint that can be tightened—or withheld—in future years.
Why Washington is threading the needle
US export controls on advanced semiconductors and manufacturing equipment are designed to slow China’s progress in capabilities relevant to advanced computing and military applications. A Congressional Research Service (CRS) overview notes the controls have been refined since the initial October 2022 rules, expanding and adjusting licensing requirements over time. Congress.gov +1
The annual-license approach suggests Washington is trying to balance two goals:
Maintain stability in global supply chains that still rely on China-based production by foreign firms.
Preserve leverage and limit technology transfer, by keeping permissions time-bound and reviewable.
Supply-chain and market implications
Memory supply continuity—at a price
China remains a critical production base for Samsung and SK Hynix, especially for mature memory used across consumer electronics and data centers. Reuters highlighted that demand for “traditional” memory has been boosted by AI-related data center growth and a broader supply tightness backdrop. Reuters
Industry analysts also point to meaningful output exposure: estimates large portions of Samsung’s NAND and SK Hynix’s DRAM/NAND production are tied to China-based capacity (shares vary by product and year).
More uncertainty for tool suppliers
For US semiconductor equipment makers, the move from standing waivers to annual renewals can create planning uncertainty: sales into China-linked supply chains may hinge on renewal cycles and policy signals, even when the destination is a foreign-owned fab.
The competitive backdrop in China’s memory push
The licensing news lands as China’s memory ecosystem continues to scale. Reuters recently reported China’s leading DRAM maker CXMT is exploring a large Shanghai listing to fund expansion and upgrades, underscoring the strategic competition in memory and adjacent packaging capabilities.
What to watch next
License scope: whether approvals are interpreted as maintenance-only or allow meaningful capability upgrades.
Renewal risk: the policy leverage embedded in annual renewals heading into 2027.
Downstream pricing: any knock-on effects in memory pricing if tool flows tighten or renewals become more restrictive.