US Revokes Chip Export Licenses Affecting Taiwan, South Korea, China Supply Chains

The US government has revoked the authorization allowing Taiwanese and South Korean semiconductor giants like TSMC, Samsung, and SK Hynix to freely export advanced American technology to their plants in China, aiming to close an export control loophole. This change will require these companies to seek individual licenses for shipments, potentially causing delays, increased costs, and operational disruptions that could threaten plant viability and impact smaller manufacturers reliant on affordable chips. The restrictions highlight the US's critical role in the global chip supply chain through its dominance in chip design, software, and essential equipment production. However, the move may inadvertently accelerate China's domestic chip industry development, as Chinese firms seek alternatives to restricted foreign suppliers. Meanwhile, TSMC and other affected companies are engaging with the US government to minimize disruptions, though analysts warn that small and medium-sized enterprises (SMEs) in sectors like consumer electronics and automotive could face higher costs and supply bottlenecks. These developments underscore the intense geopolitical and economic balancing act amid rising US-China tensions in the semiconductor sector.