Intel, Samsung’s China Chip Plants Targeted in New U.S. Export Rules

The U.S. Department of Commerce has officially revoked the Validated End-User (VEU) authorization for three major semiconductor firms operating in China:

1. Intel Semiconductor (Dalian) Co. Ltd.
2. Samsung China Semiconductor Co. Ltd.
3. SK Hynix Semiconductor (China) Ltd.

What VEU Authorization Meant

• The VEU program allowed Intel, Samsung, and SK Hynix to import U.S.-origin chipmaking equipment into China without individual export licenses.
• It streamlined operations for large-scale semiconductor manufacturing in China.

What Changed

• The U.S. Department of Commerce revoked VEU status for:
  • Intel Semiconductor (Dalian) Co. Ltd.
  • Samsung China Semiconductor Co. Ltd.
  • SK Hynix Semiconductor (China) Ltd.
• Companies now have 120 days before the waivers expire.
• After expiration, they must apply for individual licenses for each shipment.
• The U.S. has stated it will not approve licenses for expansion or tech upgrades at these Chinese facilities.

Strategic Implications

• Washington’s rationale: Part of a broader effort to tighten export controls and close “Biden-era loopholes.”
• China’s response: Condemned the move, calling it a misuse of export controls and warning of global supply chain disruptions.
• South Korea’s position: Working to minimize impact on Samsung and SK Hynix, which rely heavily on Chinese fabs for memory chip production.

This decision could reshape global chip supply chains and intensify the tech decoupling between the U.S. and China.