The decision comes after Washington earlier this year revoked certain licence waivers for tech companies, signaling a tighter grip on the flow of advanced technology to China.

Under the new arrangement, Samsung and SK Hynix will operate under an annual approval system for chipmaking tool exports a shift from previous exemptions that had allowed smoother shipments.

Previously, both South Korean companies, along with Taiwan’s TSMC, enjoyed what was known as ‘validated end user status,’ a privilege allowing them to receive American chipmaking tools without the usual hurdles.

That status will expire on December 31, meaning shipments after that date require direct U.S. licences.

The move highlights the delicate balancing act in global tech trade. While the U.S. seeks to curb China’s access to advanced chips, it also must consider the commercial realities of companies whose factories rely on these shipments to stay competitive.

Samsung and SK Hynix, whose memory chips are in high demand for AI data centers, count China as a key production hub. Prices for traditional memory chips have been climbing amid soaring demand and tightened supply, making uninterrupted access to equipment vital.

While neither Samsung nor SK Hynix offered comments, the announcement underscores the broader tension between geopolitics and technology.

As nations navigate export controls and strategic industries, even seemingly small licensing decisions can ripple across the global tech landscape.