Samsung wins key US approval for its China chip factory

The United States has implemented various export controls to limit the flow of US-technology to semiconductor factories in China.

The country does provide exemptions to certain countries and Samsung has now been able to secure them, enabling the company to bring vital equipment to its chipmaking factory.

Samsung has reportedly been allowed by the United States government to export US-origin tech for the operation of its semiconductor factory in China on an annual basis. The company is said to have secured the export exemption for 2026.

Geopolitics have played a role in this as fellow Korean chipmaker SK Hynix has also been granted this “Verified End User” status by the US government. It's this status that allows the export of the aforesaid technology without requiring separate individual permission, as long as security requirements are met.

Companies like Samsung rely on this status to continue the operation of their facilities in China. In the event that this status is revoked, they will have to seek individual approval from the United States every single time they need to bring in the equipment. This would cause unnecessary delays which can prove to be quite expensive in the chipmaking business.

The equipment is vital in ensuring production stability. Chipmakers like Samsung and SK Hynix may have leaned on the US government to provide them the compromise of allowing one-year exports instead of fully restricting the export of certain US-origin tech to China.