Samsung and SK Hynix are facing challenges in China as their chip licenses are being revoked by the US Commerce Department, preventing them from using new equipment in their Chinese factories.
Both companies have manufacturing facilities in China, but Samsung primarily produces legacy chips there while focusing on high-end chip production in other countries.
The US's decision to revoke their licenses is part of efforts to limit China's chip production capabilities and shift production elsewhere. This setback will impact Samsung's chip operations in the region, as they will no longer be able to upgrade or expand production capacity.
