US Revokes Chip Equipment Waivers for Samsung, SK Hynix and TSMC

The United States Department of Commerce revoked the validated end-user (VEU) status for Samsung Electronics, SK Hynix, Intel, and Taiwan Semiconductor Manufacturing Company (TSMC), ending a Biden-era program that allowed these firms to import U.S. semiconductor equipment into China without individual licenses. The decision, announced in late August 2025, gives affected companies 120 days before waivers expire, with TSMC's revocation for its Nanjing facility effective December 31, 2025.

Under Secretary of Commerce Jeffrey Kessler stated the move aims to close export control loopholes that put American firms at a competitive disadvantage. While the government may grant licenses to maintain existing operations, the Bureau of Industry and Security explicitly stated it does not intend to authorize technology upgrades or capacity expansions in China.

The restrictions target critical production hubs, including Samsung's Xi’an plants and SK Hynix's Wuxi facility, which produce significant portions of global NAND flash and DRAM memory. Following the announcement, shares of Samsung and SK Hynix fell between 2% and 5%. The Ministry of Commerce of the People's Republic of China condemned the action as a political weapon driven by self-interest, warning it would disrupt global supply chains.

Parallel to these restrictions, the Trump administration negotiated a reduction in tariffs on South Korea from a proposed 25% to 15% following a summit with President Lee Jae Myung. Additionally, Intel agreed to provide the U.S. government with a 10% stake in the company following pressure regarding CEO Lip-Bu Tan's ties to China.