Samsung and SK Hynix tumble after U.S. tightens chip export rules

Samsung Electronics and SK Hynix shares plummeted on Monday in the wake of revised rulings on critical semiconductor shipping requirements from the ￰0￱ new ruling also makes it harder for the world’s largest memory chipmakers to ship their equipment to their giant Chinese ￰1￱ the time of publication, Samsung shares slid more than 3% in the last 24 hours to 67,600 ￰2￱ Hynix shares also dropped nearly 5% during the same period to 256,250 ￰3￱ impacts sales of semiconductor equipment to China The Department of Commerce’s Bureau of Industry and Security said it does not intend to grant licenses to expand capacity or upgrade technology at fabs in ￰4￱ Samsung and SK Hynix have several memory plants in Korea, while Beijing also accounts for a major slice of both Korean companies’ global ￰5￱ manufactures nearly 40% of its total NAND flash memory chips at its production plant in Xi’an, ￰6￱ Hynix also produces 20% of its NAND flash chips in Dalian, Liaoning, and roughly 40% of its DRAM in Wuxi, ￰7￱ 2023, the former-President Biden’s administration granted the duo the ability to operate in China under regulations allowing them to import semiconductor equipment without applying for a new ￰8￱ Trump administration seeks to overturn what’s known as the validated end user (VEU) ￰9￱ Commerce Department said on Friday that the companies will now need to obtain licenses to export their technology to China, but will not be granted licenses to expand capacity or upgrade ￰10￱ recently reported by Cryptopolitan, both firms have 120 days until the waiver expires.

“The Trump administration is committed to closing export control loopholes – particularly those that put ￰11￱ at a competitive disadvantage.” – Jeffrey Kessler , Under Secretary of Commerce for Industry and ￰12￱ Executive Chairman Jay Lee was also asked on Sunday about the impact of the new ruling on its Chinese business and argued that the company will have to work ￰13￱ Korea’s government said the stability of the global semiconductor supply chain depends on the stable operation of its semiconductor companies in ￰14￱ government also promised to continue discussions with the ￰15￱ mitigate the impact on South Korean Companies. A spokesperson for Beijing’s commerce ministry said China opposes the new ￰16￱ agency also said it will take necessary measures to resolutely safeguard the legitimate rights and interests of its ￰17￱ comes amid heightened ￰18￱ policies The new ￰19￱ came amid heightened ￰20￱ policies that have disrupted global trade for the better part of the ￰21￱ ￰22￱ Department hinted in June at the possibility of revoking the rules, after a White House official said the ￰23￱ preparing in case the truce in trade talks with South Korea fell ￰24￱ ￰25￱ South Korea agreed on a 15% levy on Seoul imports to the ￰26￱ August ￰27￱ and the ￰28￱ agreed on 30% tariffs on Chinese imports to the ￰29￱ 10% levies on ￰30￱ till ￰31￱ previously reported by Cryptopolitan, the country’s trade minister, Yeo Han-koo, also said both Samsung and SK Hynix are exempted from 100% ￰32￱ on semiconductor ￰33￱ Miller, the author of ‘Chip War,’ argued that the ￰34￱ will make it harder for Korean chipmakers with facilities in China to continue producing more advanced ￰35￱ also believes that the move risks opening market space for Chinese firms at the expense of the Korean firms if the measure isn’t accompanied by further steps against Chinese ￰36￱ your project in front of crypto’s top minds?

Feature it in our next industry report, where data meets impact.