Allied chipmakers (Samsung, SK Hynix, TSMC) got 1-year China fab waivers with no permanent resolution

Samsung and SK Hynix operate memory fabs in China that use US-origin equipment. The October 2022 export controls technically required them to stop servicing this equipment, which would shut down fabs representing billions in investment. BIS granted 1-year waivers, then extended them, creating perpetual uncertainty. Neither Samsung nor SK Hynix will invest in expanding their China fabs (reducing future dependence on China) nor can they exit (writing off billions). This persists because the controls were designed to restrict China's access to advanced chips but inadvertently captured allied companies' existing operations, and BIS has no framework for permanently grandfathering existing facilities while restricting new ones.