The US has revoked Samsung, SK Hynix and Intel’s VEU status, forcing license requirements on chipmaking tools to China to curb technology transfer.
The US Commerce Department has moved to revoke the validated end-user (VEU) status of Samsung Electronics, SK Hynix, and Intel Semiconductor Ltd, a decision that will directly tighten export rules on advanced chipmaking tools supplied to China.
With the change, Samsung and SK Hynix must now obtain licenses to send certain US semiconductor equipment to their Chinese facilities. The measure, set to take effect 120 days after its publication on 2 September, will prevent the firms from receiving approvals for capacity expansion or technology upgrades at their plants in China.
The department said the move aims to close a ”Biden-era loophole,” signalling Washington’s determination to restrict Beijing’s access to advanced semiconductor technology while simultaneously reshaping the global chip ecosystem and raising hurdles for Korean memory giants.
Jeffrey Kessler, Under Secretary of Commerce for Industry and Security, stated:
“The Trump Administration is committed to closing export control loopholes — particularly those that put U.S. companies at a competitive disadvantage. Today’s decision is an important step towards fulfilling this commitment.”
The South Korean government confirmed it had been briefed in advance. The Ministry of Trade, Industry and Energy emphasised ongoing engagement with Washington, noting:
“The government has been closely communicating with the U.S. Department of Commerce on possible adjustments to the VEU system, stressing the importance of smooth operations of our chipmakers’ Chinese facilities for global semiconductor supply chain stability. Even if VEU status is withdrawn, we will continue to work with the U.S. to ensure any impact on Korean companies is minimised.”
Samsung and SK Hynix had earlier secured VEU status under the Biden administration, simplifying tool shipments to China. The revocation adds pressure on the semiconductor supply chain as the US intensifies restrictions on technology exports amid its rivalry with China.
