Washington Targets South Korean and Taiwanese Semiconductor Giants in New Export Control Push

In a significant move that could reshape the global semiconductor landscape, the U.S. government is reportedly preparing to revoke key export waivers that currently allow companies such as Samsung, SK hynix, and TSMC to use American technology in their Chinese chip manufacturing facilities without requiring individual licenses. The plan, reported by The Wall Street Journal, is part of a broader effort to clamp down on China’s access to cutting-edge technology.

While White House officials insist the initiative isn’t designed to escalate trade tensions, the implications are far-reaching. The potential rollback of these waivers would mark a major escalation in the tech rivalry between Washington and Beijing, with ripple effects for global supply chains and U.S. allies in Asia.

What the Waiver Rollback Means

Currently, leading South Korean and Taiwanese semiconductor firms operate advanced chipmaking facilities in mainland China. These plants rely heavily on American-made equipment and software, including tools from companies such as Applied Materials, Lam Research, and KLA. For now, these firms enjoy a waiver system that lets them continue using U.S. technology in China without undergoing a lengthy approval process for each export.

If the Biden administration—or a potential Trump return—revokes these waivers, every shipment of U.S.-based tech to those Chinese plants would require individual licensing. This would create logistical headaches, delay production schedules, and increase compliance costs. It may also prompt affected companies to reconsider their long-term operations in China and accelerate plans to move production to countries such as the U.S., Japan, or India.

Strategic Rationale: Cutting Off Indirect Access

At the heart of the U.S. decision lies a strategic concern: stopping China from gaining indirect access to American technology via foreign-owned plants operating within its borders. Even though these fabs are not Chinese-owned, the risk of knowledge transfer, talent migration, or intellectual property leakage remains a pressing issue for U.S. policymakers.

This move aligns with broader U.S. efforts to maintain control over the global semiconductor value chain. Since 2022, the U.S. has committed tens of billions of dollars through the CHIPS and Science Act to boost domestic manufacturing and lure foreign chipmakers to set up production on American soil. Revoking the waivers would close a loophole and reinforce U.S. dominance in chipmaking know-how and regulation.

Impact on Samsung, SK hynix, and TSMC

The companies most affected by the policy shift are central players in the global memory and logic chip markets. For Samsung and SK hynix, both of which produce large volumes of DRAM and NAND chips in China, the waiver removal could severely disrupt their supply chain operations. U.S. technology underpins key equipment used in etching, lithography, and wafer processing.

TSMC, meanwhile, finds itself navigating increasingly complex geopolitical pressures. The company is already under pressure to diversify production outside Taiwan. The added risk of losing access to essential tools in China may further accelerate its investments in the U.S., Japan, and Europe—moves already in progress but far from fully operational.

Politics and Timing: Beyond National Security?

Although officials have framed the move as a national security safeguard, some analysts see political calculus at play. In the context of an election year, taking a tougher stance on China plays well with bipartisan voters. The Trump administration’s framing of “technological sovereignty” and “supply chain independence” is designed to appeal to concerns over economic resilience and national strength.

Regardless of the political motive, the shift marks a departure from prior cooperation with allied firms, signaling a more unilateral approach to tech decoupling. Allies in Asia may find themselves caught between competing demands: adhering to U.S. restrictions while maintaining business viability in the massive Chinese market.

Broader Consequences for the Global Semiconductor Supply Chain

The semiconductor industry underpins modern economies—powering everything from smartphones to electric vehicles to defense systems. Disrupting the supply chain through export restrictions—especially when it targets key fabs in China—could exacerbate global chip shortages and push up prices across multiple industries.

Market reaction has been swift. Shares in Samsung, SK hynix, and TSMC have already faced volatility. U.S. semiconductor equipment manufacturers may also see revenue impacts, especially if licensing delays slow down sales to major customers in China.

Conclusion: Navigating a Fragile Tech Balance

The proposed U.S. action marks a pivotal moment in the evolution of global semiconductor policy. Revoking waivers for allies’ chip plants in China may bolster U.S. control over strategic technologies, but it risks alienating key partners and destabilizing an already fragile supply ecosystem.

Whether this move proves to be a temporary political tool or a long-term structural realignment remains to be seen. One thing is clear: the race for technological dominance is no longer just about China and the U.S.—it’s about every nation and company caught in between.