How the US exerts controls over foreign chipmakers in China

Despite years of engagement in a global chip war, China remains a vital operation base for several Asian-grown champions. But even from afar, Washington still holds key levers of power. The latest example: The US government’s revoking of authorization for Taiwanese and South Korean chip titans to freely send vital American technology-powered equipment to plants in China.

The change, which will go into effect next year, could hobble production, ultimately even threatening the plants’ survival.

The Biden-era exemption let chipmakers TSMC, SK Hynix and Samsung export critical production equipment to China. Cutting that exemption underscores how important the US is to the global chip supply chain – and to all the products those chips help power, from cars to phones to weapon systems.

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