The US is tightening the screws on China, especially when it comes to tech, and things could get even harder when Trump returns to the White House. We’re in the middle of the whole TikTok mess, which could end with a ban. And if that happens, expect even more heat on Chinese tech companies. But the real story here is how companies like Samsung are going to handle the US pressure.
US plans more chip regulations, with Samsung and TSMC as key enforcers
The Biden administration has already introduced tighter controls on chip exports to China, aiming to stop high-tech chips from getting into the hands of companies like Huawei, as Bloomberg reports. Samsung, being one of the biggest chipmakers in the world, is right in the thick of it. Things could get even trickier when Trump takes office. His “tough on China” approach means the restrictions on companies like Samsung could become even stricter.
For Samsung, this puts them between a rock and a hard place. On one hand, it has massive operations in China — one of its biggest markets. On the other, the US is an essential partner, and it just can’t afford to lose access to that market. The new regulations would require Samsung to carefully vet their customers, making sure it hasn’t inadvertently sent chips to Chinese companies trying to skirt the rules. Chips with smaller nodes — 14 or 16 nm — are likely to be a focal point, and selling them to China will probably require a special license from the US government.
Under the CHIPS Act, Samsung, TSMC, Intel, and several other chipmakers have secured funding. Reportedly, Intel secured $7.86 billion in funding, TSMC secured $6.6 billion, and Samsung secured $4.745 billion in funding. Notably, Samsung is also planning to make 2nm chips in Taylor, Texas facility in a bid to compete against TSMC.
