US Revokes Chip Equipment Waivers for Samsung, SK Hynix, TSMC
The US Department of Commerce revoked validated end-user status for major chipmakers, requiring individual licenses for equipment shipments to their facilities in China.
The United States Department of Commerce revoked the validated end-user (VEU) status for Samsung Electronics, SK Hynix, Intel Corporation, and Taiwan Semiconductor Manufacturing Company (TSMC), ending a Biden-era program that allowed these firms to ship U.S. semiconductor equipment to China without individual licenses. The revocations, announced in late August and early September 2025, require the companies to secure case-by-case export licenses for all future shipments. While the government intends to grant licenses to maintain existing operations, it will not authorize technology upgrades or capacity expansions.
Under Secretary of Commerce Jeffrey Kessler stated the move aims to close export control loopholes that put American firms at a competitive disadvantage. The restrictions target critical production hubs, including Samsung's Xi’an plants and SK Hynix's Wuxi facility, which together produce a significant portion of the global NAND flash and DRAM supply. TSMC's authorization for its Nanjing facility will expire on December 31, 2025. Following the announcement, shares of Samsung and SK Hynix fell between 2% and 5%.
China's Ministry of Commerce condemned the action as a weaponization of export controls driven by self-interest. Meanwhile, Intel Corporation agreed to provide the U.S. government with a 10% stake in the company following pressure from President Donald Trump regarding CEO Lip-Bu Tan's ties to China. The policy shift follows a summit between President Trump and South Korean President Lee Jae Myung, where the two leaders negotiated a reduction in proposed tariffs on South Korea to 15%.
