Market news has been released that the Trump administration intends to cancel the current exemption of shipping US chip manufacturing equipment to Chinese factories without the need for a unique license for each application. In other words, this may make it more difficult for Samsung and SK Hynix to transport key equipment to Chinese factories, which also puts the stock prices of the two companies in a dilemma of double declines on Monday (1st).

Samsung and SK Hynix were originally protected by special regulations in China's business operations, allowing them to import chip manufacturing equipment without having to reapply for each re-apply. However, according to the US Federal Publicity announcement, the exemption will expire in 120 days. Enterprises can apply for permission to continue to maintain operation.

These exemptions date as early as 2023, when the Biden administration decided to allow South Korea's chip manufacturers to obtain the equipment needed to maintain and expand Chinese businesses. The Government of China has issued an indefinite exemption for advanced manufacturing equipment prohibited from being transported to China.

SK Hynix stated that it will maintain close communication with the Korean and US governments and take necessary measures to minimize the impact on business. Samsung has not yet commented on this.

The Korean Ministry of Industry said that the Korean government has explained to the US Department of Commerce that the importance of Korean memory companies' continued operation in China and the stability of global semiconductor supply chains will also continue to discuss with the US in order to minimize the impact on Korean companies.

Jeffrey Kessler, deputy director of the U.S. Department of Commerce, said in a statement that the Trump administration is committed to plugging export control loopholes, especially those that have allowed American companies to compete for inferior competition. Today's decision is an important step in achieving this commitment.

According to Bernstein Research, the withdrawal of the exemption has limited impact on the semiconductor equipment market. Non-Chinese companies' spending on purchasing new equipment at Chinese factories in 2024 was only about US$2 billion, less than 2% of the total global equipment sales last year.

However, the impact of overseas companies' factories in China on memory supply cannot be ignored. The research points out that these factories contribute 10% of global computer memory production and 15% of memory chip production.

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