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- TSMC and Samsung may lose U.S. export waivers that allow them to use American chip tools in their Chinese plants.
- The Commerce Department aims to tighten tech flows to China, citing national security and trade parity.
- Revoking waivers could disrupt operations and force chipmakers to rethink their global manufacturing strategies.
- Although no decision has been finalized, markets and tech firms are already reacting to the growing uncertainty.
Taiwan’s TSMC and South Korea’s Samsung Electronics may soon face major disruptions to their Chinese operations, as the U.S. government considers revoking key export waivers that allow them to acquire advanced American chip manufacturing equipment.
The move is part of a broader effort by Washington to curtail China’s access to sensitive technologies and could significantly alter the global semiconductor supply chain.
Jeffrey Kessler, head of export controls at the U.S. Commerce Department’s Bureau of Industry and Security, has reportedly signaled his intent to cancel the waivers granted to companies like TSMC, Samsung, and SK hynix. These waivers currently allow them to import American etching, deposition, and other manufacturing tools for use in their Chinese plants without the need for individual licenses.
Kessler outlined his plans at a recent House subcommittee hearing, describing loopholes in U.S. policy that have enabled adversaries to advance technologically. Although the policy change has not yet been finalized, it has already raised concerns among global chipmakers and spooked markets, with shares of major semiconductor equipment providers like Lam Research and Applied Materials falling sharply following the reports.
Washington Pressures Tech Flows Amid Rare Earth Disputes
The proposed rollback comes as the United States looks to counterbalance China’s increasingly aggressive posture on rare earth exports. Beijing recently imposed a six-month limit on export licenses for rare earth minerals, an essential component in many high-tech and defense-related applications. In response, U.S. officials argue that technology exports should be subject to similar controls, ensuring what they call a more “equal and reciprocal” trade system.
While high-end chipmaking still depends on Dutch firm ASML for extreme ultraviolet (EUV) lithography tools, a broad range of chip production processes, including those used at mature manufacturing nodes—rely heavily on U.S. equipment. Samsung, TSMC, and SK hynix currently operate such facilities in China and have benefited from relatively unrestricted access to American machines.
If the waivers are revoked, those companies could face significant hurdles in upgrading or maintaining their Chinese plants. This could not only slow down production but also force the companies to weigh shifting more operations outside China to avoid complications.
Strategic Risks and Diplomatic Tightropes
The Biden administration faces a delicate balancing act. On one hand, restricting technology exports is a way to slow China’s growing self-sufficiency in semiconductors. On the other, it risks undermining long-standing alliances with key partners such as Taiwan and South Korea, both of whom depend on Chinese manufacturing to support their global operations.
U.S. officials maintain that any new rules would merely align with existing Chinese restrictions and not escalate trade tensions. However, there is concern that tighter U.S. controls could backfire, pushing China to accelerate its investment in domestic chip tools. Already, local suppliers like AMEC and NAURA have seen rapid growth, buoyed by state-led initiatives to replace foreign tech.
A Policy in Flux, But Impact Already Felt
Despite assurances that no final decision has been made, the semiconductor industry is already bracing for potential ripple effects. The threat of export control changes has stirred uncertainty across markets and introduced new geopolitical risks into global chip supply chains.
For companies like TSMC and Samsung, the path forward may depend not just on Washington’s next move but also on how Beijing responds. As technology becomes a front line in U.S.-China relations, chipmakers are caught in a complex web of economics, diplomacy, and strategic competition.
