Samsung, SK Hynix, and TSMC Adjust Chip Manufacturing Strategies

US Restrictions Affect Chip Manufacturing Samsung, SK Hynix, and TSMC Adjust Chip Manufacturing Strategies

2025-09-03 From Susanne Braun | Translated by AI 2 min Reading Time

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The US government presents new challenges to the global chip industry: While Samsung and SK hynix grapple with tightened regulations in China, TSMC is proactively securing its 2-nm processes against potential restrictions.

The Cheongju campus of SK hynix in South Korea.(Image: SK hynix) — The Cheongju campus of SK hynix in South Korea.
(Image: SK hynix)

Since taking office, the US government has pursued the goal of strengthening domestic semiconductor production while also increasing regulation of imports and exports—primarily in relation to China. At the end of August 2025, the Biden administration revoked an exemption that had allowed Samsung, SK hynix, and Intel to freely import US-made chip manufacturing equipment to China.

Intel is no longer affected by this: The company had already sold its plant in Dalian, China, in March 2025. The buyer was SK hynix, which took over Intel's NAND business; the SSD division was spun off as Solidigm.

Production delays possible

For Samsung and SK hynix, this step means that the special permits will expire in 120 days. While licenses for operating existing fabs are expected to remain possible, they will not cover capacity expansions or technological upgrades. This move by the government is likely to affect US equipment manufacturers such as KLA, Lam Research, and Applied Materials, which recently generated about a third of their revenue in China. However, opportunities are opening up for Chinese tool providers and for Micron as a direct US competitor in the memory market.

The scale is significant: According to TrendForce's assessment, around 30 to 35 percent of Samsung's NAND output will come from China in 2025, while for SK hynix, it's 35 to 40 percent of DRAM and 40 to 45 percent of NAND production. The new regulations could delay maintenance processes by months and force adjustments to production lines. In the long term, this might even lead to a partial relocation of manufacturing back to South Korea.

TSMC secures 2-nm processes

In parallel, TSMC is drawing its own conclusions. According to reports from Digitimes and Nikkei Asia (via Tom's Hardware), the contract manufacturer has decided not to use Chinese tools for its 2-nm factories in Hsinchu, Kaohsiung, and later in Arizona. Instead, only equipment from Japan, the US, and Europe will be used. The rationale is the proposed "Chip EQUIP Act," which requires subsidy recipients to avoid equipment from providers classified as "questionable," including Chinese companies such as AMEC or Mattson Technology. (sb)

Intel's managers and the US government are in agreement. (Image:Intel Corp.)

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