Is this a despicable act or another strategic move by the US to force foreign companies to return to producing chips in their country? This is the question when the US withdrew permission for Intel, Samsung and SK Hynix to use chip manufacturing machines with their own technology in China this week.
Previously, exemptions were given to the three companies and after this they will have to apply for a license from the US to continue using them. This directive issued by the US Department of Commerce will take effect in 120 days. After this, the license is only allowed for companies to continue existing operations in China but not to offer it to expand capacity and upgrade technology.
This latest directive from the US Department of Commerce has caused shares of several equipment manufacturers in the US to fall. It is seen as another pressure by the US to force chip manufacturing companies to focus on them, thus having an impact on China.
Samsung and SK Hynix have already built fabrication plants in the US. This qualifies them to avoid being imposed a 100% tariff on chip and semiconductor imports that Trump announced earlier this month.
