U.S. To Cancel Chip Waivers For China Operations
- U.S. plan increases restrictions on Chinese chip operations.
- Impact on South Korean and Taiwanese firms anticipated.
- U.S. chip stocks experienced declines after the announcement.
The U.S. Department of Commerce announced plans to revoke existing waivers allowing Samsung, SK Hynix, and TSMC to use U.S. chip technology at their Chinese factories this week.
Removing tech waivers signifies increased U.S.-China tensions, affecting global semiconductor firms and markets.
The U.S. Commerce Department has indicated it will cancel existing waivers that permit companies like Samsung, SK Hynix, and TSMC to utilize U.S. technology in their Chinese factories. Jeffrey Kessler notified these companies of the decision. This decision reflects similar past actions by the United States, targeting semiconductor exports to China. Previous restrictions have historically led to stock declines for U.S. chip equipment firms.
Following the announcement, U.S. chip equipment manufacturers experienced share price drops—KLA Corp down 3.8%, Lam Research down 4.7%, and Applied Materials down 3.8%. These movements indicate market uncertainty regarding the decision’s implications. Financial impacts are so far contained within traditional equity markets. Crypto markets have shown no immediate volatility; BTC and ETH remain stable despite the news. This reaction highlights resilience in cryptocurrency prices amid broader macro risk events.
Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, U.S. Department of Commerce, said, “Chipmakers will still be able to operate in China. The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.”
There are no signs of immediate on-chain liquidity shifts or TVL changes in response to this policy. However, market analysts suggest vigilance regarding future U.S.-China tech escalations, which could shift investor sentiment towards more established cryptocurrencies like BTC and ETH. Community and industry leaders have refrained from commenting on this policy, reflecting the broader wait-and-see attitude across different market sectors.
