The United States is making it more difficult for chipmakers Samsung and SK Hynix to produce chips in China by revoking authorizations that allowed the companies to receive American semiconductor manufacturing equipment there, according to the Federal Register.

The U.S. Commerce Department had given the companies exemptions to sweeping restrictions created in 2022 on the sale of U.S. semiconductor equipment to China. The companies will now need to obtain licenses to buy the equipment for China.

The federal filing also included Intel among the companies that lost their authorization for China, although Intel sold its Dalian China unit in a deal that was finalized this year. The revocations will take effect in 120 days, according to the posting.

The Commerce Department said in a statement that the United States plans to grant license applications to allow the companies to operate their existing facilities in China, but does not intend to grant licenses to expand capacity or upgrade technology.

SK Hynix said in a statement that it “will maintain close communication with both Korean and the U.S. governments and take necessary measures to minimize the impact on our business.” Samsung did not respond to a request for comment.

South Korea’s government has explained to the Commerce Department “the importance of a stable operation of our semiconductor companies in China for the stability of the global semiconductor supply chain,” the industry ministry said.

Seoul will continue discussions with Washington to minimize the impact on South Korean companies, the ministry said. The licensing change will likely reduce sales to China by U.S. equipment makers KLA Corp, Lam Research and Applied Materials.

The companies did not immediately respond to requests for comment. Shares of Lam fell 4.4%, Applied Materials dropped 2.9% and KLA shares were down 2.8%.