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Illustration shows Samsung Electronics logo and computer motherboard
SEOUL, Dec 30 (Reuters) - The U.S. government has granted an annual licence to Samsung Electronics and SK Hynix to bring in chip manufacturing equipment to their facilities in China for 2026, two people familiar with the matter said on Tuesday.
The approval is a temporary relief for the South Korean firms and follows a U.S. decision earlier this year to revoke licence waivers given to some tech companies.
One of the sources said that Washington introduced the annual approval system for exports of chipmaking tools to China.
Samsung, SK Hynix and TSMC had benefited from exemptions to Washington's sweeping restrictions on chip-related exports to China. But the privilege known as validated end user status will end on December 31, meaning shipments of American chipmaking tools to their factories in China after that date will require U.S. export licences.
Samsung and SK Hynix declined to comment while TSMC did not immediately respond to requests for comment. The U.S. Department of Commerce was not immediately available for comment outside business hours.
Keen to limit China's access to advanced American technology, U.S. President Donald Trump's administration has been re-examining export controls that it thought were too relaxed under the Biden administration.
South Korea's Samsung Electronics, the world's top memory chipmaker, and second-ranked SK Hynix count China as one of their key production bases especially for traditional memory chips, whose prices have been surging due to demand from AI data centers and tightened supplies.
Not to my knowledge. There is no specific IP percentage I've ever read about. And there's no all-inclusive list of products that need a US export license either. It is up to the exporter to do due diligence, and apparently even one patent (or even a filing still in process) that is considered sensitive can result in an export license denial. I was told years ago that which country the product is being exported to is the most critical determining factor in whether or not you get a license.
Other countries have their own export licensing requirements, and are in addition to US restrictions. A simple internet search reveals that, for example, the Netherlands has a rigorous export process too, if the product includes any Netherlands IP. What confuses me is whether the Netherlands can restrict an export from the US because the product includes Netherlands IP.
Not to my knowledge. There is no specific IP percentage I've ever read about. And there's no all-inclusive list of products that need a US export license either. It is up to the exporter to do due diligence, and apparently even one patent (or even a filing still in process) that is considered sensitive can result in an export license denial. I was told years ago that which country the product is being exported to is the most critical determining factor in whether or not you get a license.
Other countries have their own export licensing requirements, and are in addition to US restrictions. A simple internet search reveals that, for example, the Netherlands has a rigorous export process too, if the product includes any Netherlands IP. What confuses me is whether the Netherlands can restrict an export from the US because the product includes Netherlands IP.
An export license is a government document that authorizes or grants permission to conduct a specific export transaction (including the export of technology).
www.trade.gov
My knowledge was, admittedly, from several years ago, but the link above has no mention at all of the 25% trigger level, and I followed several of the embedded links (but I was too lazy to follow them all). No mention of the 25% number either. So the question is, do you have evidence?
An export license is a government document that authorizes or grants permission to conduct a specific export transaction (including the export of technology).
www.trade.gov
My knowledge was, admittedly, from several years ago, but the link above has no mention at all of the 25% trigger level, and I followed several of the embedded links (but I was too lazy to follow them all). No mention of the 25% number either. So the question is, do you have evidence?
I will look for some links , but this came from BIS at 2024 Import/Export Seminar in Singapore.
The De Minimis Rule in the context of U.S. export controls is a regulation under the Export Administration Regulations (EAR) that determines whether a foreign-made product containing U.S.-origin content is subject to U.S. licensing requirements. This rule helps limit U.S. jurisdiction over products manufactured abroad that incorporate only a minor percentage of U.S. controlled parts, software, or technology.
Key Details of the EAR De Minimis Rule
General Threshold: For most destinations worldwide, the de minimis threshold is 25% of the total value of the foreign-made item.
How it Works: If the value of the controlled U.S.-origin content is less than or equal to 25% of the total value of the foreign item, that item is generally not subject to the EAR and does not require a U.S. export license (though the U.S. content itself remains subject to the EAR).
I will look for some links , but this came from BIS at 2024 Import/Export Seminar in Singapore.
The De Minimis Rule in the context of U.S. export controls is a regulation under the Export Administration Regulations (EAR) that determines whether a foreign-made product containing U.S.-origin content is subject to U.S. licensing requirements. This rule helps limit U.S. jurisdiction over products manufactured abroad that incorporate only a minor percentage of U.S. controlled parts, software, or technology.
Key Details of the EAR De Minimis Rule
General Threshold: For most destinations worldwide, the de minimis threshold is 25% of the total value of the foreign-made item.
How it Works: If the value of the controlled U.S.-origin content is less than or equal to 25% of the total value of the foreign item, that item is generally not subject to the EAR and does not require a U.S. export license (though the U.S. content itself remains subject to the EAR).
After a little digging, I see the source of the confusion, now that you specified de minimus regulations. MKW brought up the subject of US intellectual property, which I was answering. US export licenses regarding products with US IP are as I described. You, on the other hand, are referring to the de minimus rule as it applies to the source of value in dollar terms of foreign origin in US-made exports. If the foreign value is less than 25%, the US-made product isn't subject to de minimus export controls.
Learn how the de minimis rule impacts export control compliance. Understand thresholds, foreign-origin content calculations, and licensing requirements to ensure regulatory adherence.
www.ctp-inc.com
I had no idea de minimus rules applied to US exports. I thought they only applied to imports. Nonetheless, the question here was export licenses based on US IP, not on de minimus value.
