The Trump administration has announced it will make it more difficult for Intel, Samsung and SK Hynix to manufacture microchips in China.
The U.S. Commerce Department is revoking authorizations that previously allowed companies to receive American semiconductor manufacturing equipment in China.
Chipmakers will now need to obtain licenses to buy the U.S. equipment to manufacture in China but these will only be granted to allow the companies to operate existing facilities, the Commerce Department said. No licenses will be granted allowing firms to expand capacity or upgrade technology.
The move not only comes as a blow to Samsung and SK Hynix, but to China too as its access to advanced chipmaking expertise is restricted. Sales to China by U.S. equipment makers are also expected to drop.
This is breaking news, updates to follow.
