The view of Samsung Electronics semiconductor factory in Xi'an, China./Courtesy of Samsung Electronics

The Donald Trump administration in the U.S. has notified that it will restrict the supply of American-made equipment to semiconductor companies in Korea, such as Samsung Electronics and SK hynix, for their factories in China, according to a report by The Wall Street Journal (WSJ) on the 20th (local time).

According to WSJ, Jeffrey Kessler, the Deputy Vice Minister of the U.S. Department of Commerce's Bureau of Industry and Security (BIS), notified Samsung Electronics, SK hynix, and Taiwan's TSMC of this policy this week.

This is seen as part of strengthening controls on key technologies regarding China. Samsung Electronics, SK hynix, and TSMC are receiving a blanket waiver that allows the entry of U.S.-made semiconductor equipment into their factories in China without separate permits. Kessler has notified that he wishes to cancel this measure, WSJ reported.

The U.S. government announced export controls in October 2022 during the tenure of former President Joe Biden that effectively prohibited American companies from exporting certain advanced semiconductor equipment to Chinese semiconductor manufacturers, while suspending the application of these rules for factories of Korean corporations like Samsung Electronics and SK hynix in China.