US Could Target Allies' Chip Plants in China: WSJ

US-China Trade Relations & Semiconductor Industry Impact - The US government is considering actions targeting Chinese chip plants, potentially impacting global chipmakers operating in China [1][2] - The US is considering ending waivers for companies like TSMC, SK Hynix, and Samsung, which manufacture chips in China, requiring them to obtain licenses for importing American chipmaking equipment [1][3] - This action aims to level the playing field regarding requirements for rare earths shipped to the US, potentially requiring similar licensing for American technology entering China [2][3] Scope of Restrictions - The restrictions primarily target legacy semiconductors used in automobiles, consumer electronics, and other lower-end products, not the most advanced AI chips [5] - The US government is not barring companies like AMD and Nvidia from selling their most advanced chips, but rather targeting a different segment of chip production in China [5] Impact on Chip Manufacturing - TSMC, SK Hynix, and Samsung produce a significant number of chips for the American market in China using US equipment [3] - Under the new regulations, US equipment used in these Chinese plants would require a license instead of a blanket waiver [3][4]