Samsung, SK Hynix may be exempt from restrictions on Chinese memory chipmakers: report
Octavio Jones

South Korean-based chipmakers Samsung (OTCPK:SSNLF) and SK Hynix could be exempt from looming restrictions placed on Chinese memory chipmakers by the Biden administration, Reuters reported.
The news outlet, citing sources, noted that the Biden administration is looking to curb exports of technology to China, including those from U.S. chip equipment makers, on fears the technology could be used for military purposes.
No restrictions would be placed on U.S. suppliers seeking to sell to Chinese-based chip firms if they produce DRAM chips above 18 nm, below 128 layers for NAND chips or above 14 nm for logic chips.
Sources added that license requests to sell equipment to foreign companies with operations in China would be reviewed on a case by case basis. Samsung (OTCPK:SSNLF) and SK Hynix both have memory chip plants in China.
There would be a "presumption of denial" standard for U.S. companies seeking to sell to China-based companies if they produce DRAM chips below 18 nm, above 128 layers for NAND chips and below 14 nm for logic chips and would have to apply for a license, the news outlet added.
The administration will likely deny requests from U.S. companies to send equipment to companies including Yangtze Memory Technologies and ChangXin Memory Technologies if they build advanced dynamic random access memory, or DRAM, or flash memory chips, the sources added. 
Yangtze Memory Technologies has been previously mentioned by the White House in a June 2021 report as a "direct threat" to Micron Technology (NASDAQ:MU) and Western Digital (WDC).
Apple (AAPL) has come under pressure from GOP lawmakers for potentially using memory chips from Yangtze Memory Technologies in iPhones. 
Following the report, Wells Fargo analyst Joe Quatrochi pointed out that the aforementioned restrictions would likely be "viewed as negative" for semiconductor capital equipment companies, but should not be a surprise, "given headlines over the past few months."
"We continue to view potential export restrictions on China memory customers as resulting in a net reduction of [wafer fab equipment] and not replaced by other industry players as China remains in the early stages of establishing a domestic memory industry," Quatrochi wrote.
Quatrochi did not specifically mention any companies, but some of the largest semiconductor equipment companies include KLA Corp. (NASDAQ:KLAC), Lam Research (NASDAQ:LRCX) and Applied Materials (AMAT).
On Friday, Samsung (OTCPK:SSNLF) reported third-quarter earnings fell 32% year-over-year, the company's first profit drop reported by the company since 2019.