The U.S. Government has granted an annual license to SK Hynix and Samsung Electronics to deliver chip manufacturing equipment to their facilities in China for 2026, according to a Reuters story today. Previously, the two companies had been granted a validated end user status which allowed qualifying factories in China to receive US controlled semiconductor tools but that willl lapse on Dec 31.
The U.S. significantly tightened restrictions on selling advanced chipmaking equipment and high-end chips to China, to curb Beijing’s AI and military tech, blocking key machinery (like EUV/DUV lithography) and expanding entity lists, while also allowing limited sales of slightly less advanced items with fees, impacting global supply chains as China pushes for self-sufficiency. The primary goal is to prevent China from developing cutting-edge AI and advanced military tech, keeping them behind in these strategic areas. Restrictions primarily target specific deposition and lithography machines (EUV/DUV) crucial for producing the most advanced chips . The U.S. pulled TSMC’s ability to freely transfer advanced U.S. tech to its China facilities.
The restrictions don’t always work. According to press reports, Huawei allegedly used shell companies to trick the Taiwanese chip foundry TSMC into manufacturing an astonishing total of 2 million computer chiplets for its flagship Ascend 910 AI processors. . TSMC stopped production for the shell companies immediately.
Jeffrey Newman is a whistleblower lawyer whose law firm represents whistleblowers revealing violations of export controls, tariff evasions, money laundering, healthcare fraud and other kinds of WB cases. The firm represents individuals both in the United States and other countries. Mr. Newman and his firm staff also represent physicians and other healthcare providers who become whistleblowers in healthcare fraud cases. Whistleblower laws in the U.S. allow individuals anywhere with information about export control violations or tariff fraud to reveal the information under The False Claims act or through the Securities and Exchange Commission’s Whistleblower Program. The Firm’s website is at www.JeffNewmanLaw.com and attorney Newman can be reached at Jeff@Jeffnewmanlaw.com or at 978-880-4758
