US Revokes Export Waivers for Major Chipmakers in China

The United States Department of Commerce has terminated the Validated End-User (VEU) program, revoking waivers that allowed Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics, and SK Hynix to import U.S. chipmaking equipment into China without individual licenses. The Trump administration stated the move aims to close export control loopholes that put American companies at a competitive disadvantage. The revocations for Samsung and SK Hynix take effect in 120 days, while TSMC's authorization for its Nanjing facility expires on December 31, 2025.

While the U.S. Bureau of Industry and Security may grant licenses to maintain current operations, it explicitly does not intend to approve licenses for capacity expansion or technology upgrades at fabs in China. This policy restricts these facilities to legacy technology levels. The decision followed a meeting between President Donald Trump and South Korean President Lee Jae Myung, where the two leaders agreed to a 15% tariff on Korean goods, reduced from a proposed 25%.

Market reactions were immediate, with shares of Samsung Electronics and SK Hynix dropping between 2% and 5%, and U.S. equipment suppliers Applied Materials Inc. and KLA Corp. also seeing declines. China's Ministry of Commerce condemned the action as being driven by political motives and self-interest, demanding that Washington correct its wrongdoing. Meanwhile, Nvidia CEO Jensen Huang has advocated for U.S. tech companies to maintain access to the Chinese AI market to ensure the American tech stack remains the global standard.