The US Commerce Department is reportedly considering canceling waivers that allow select global chipmakers to send American technology to Chinese factories, according to The Wall Street Journal. If the move goes ahead, it could significantly impact US companies such as Samsung Electronics, SK Hynix, and Taiwan Semiconductor.
Commerce Department official Jeffrey Kessler informed these companies earlier this week that he intends to cancel their waivers, which would prevent them from sending US chip-making technology to their Chinese factories. This news sent shockwaves through the semiconductor industry, with stocks such as Marvell Technology and Nvidia experiencing a decline of around 2%.
The move comes amid tense relations between the US and China over trade tariffs and chip controls. The two countries have agreed on a framework for a second trade agreement, but disagreements over chip exports remain a key sticking point.
US companies have faced restrictions on exporting advanced AI chips to China due to national security concerns. Nvidia CEO Jensen Huang recently stated that the Chinese AI market is “effectively closed” to US industry, citing losses of around $8 billion and $50 billion in potential revenue.
The proposed cancellation of waivers would further exacerbate these tensions, leaving companies with significant uncertainty about future trade agreements.
Source: https://www.cnbc.com/2025/06/20/chip-stocks-china.html