U.S. Considers Annual Chip Supply Approvals for Samsung and SK Hynix China Plants
The United States is weighing a proposal to require Samsung Electronics and SK Hynix to seek annual approvals for shipping chipmaking equipment and supplies to their China-based factories, Bloomberg reported Monday, citing people familiar with the matter.
The plan, presented by the U.S. Commerce Department to Korean officials last week, would replace the current validated end user (VEU) designations that granted the chipmakers indefinite export authorizations. Those designations are set to expire at the end of 2025.
Under the draft proposal, Samsung and SK Hynix would need yearly approval for specific quantities of restricted tools and materials, adding regulatory steps but ensuring their Chinese fabs can keep operating. The companies are among the largest foreign chipmakers with plants in China, supplying memory chips vital to global electronics.
Reactions in Seoul were mixed—officials expressed relief that a framework for continued operations remains, but concern over the added bureaucratic burden and potential supply chain uncertainties.
The move comes against the backdrop of intensifying U.S.-China semiconductor tensions. Since 2022, Washington has imposed sweeping export controls to curb Beijing’s chip and AI capabilities. The Biden administration had granted waivers to Samsung, SK Hynix, and TSMC to soften the blow to allied companies, but the Trump administration has pushed for tighter oversight.
The situation is further complicated by political strain: Washington revoked prior waivers days after former South Korean President Lee Jae Myung—who advocated a more balanced U.S.-China stance—signed a defense and investment deal with Trump. Recent U.S. immigration raids on Korean firms’ American subsidiaries have also fueled friction.
