Samsung and TSMC have both been granted a one-year exemption from new legislation banning companies from using US-developed chip-making equipment in Chinese factories.

The U.S. Department of Commerce granted Korean company Samsung and Taiwanese semiconductor giant TSMC permission to continue using semiconductor manufacturing equipment in the chip factories they operate in China.

Previously, the US granted South Korean company SK Hynix and its own Intel similar exemptions.

The Biden Administration has said the Commerce Department will continue to review applications for certain exports to “U.S. and U.S.-allied facilities operating in China on a case-by-case basis”, while Chinese owned factories will be denied permission.

Samsung accounts for 43.5 per cent of global revenue for DRAM memory card, while TSMC relies upon US customers for 72 per cent of its revenue, according to its September quarter financials.