The Trump administration has decided to end the waiver that allowed Samsung Electronics and SK hynix to import U.S. semiconductor equipment into their plants in China without individual approval.

The U.S. Commerce Department’s Bureau of Industry and Security announced it will remove Samsung, SK hynix, and Intel Semiconductor in Dalian, now owned by SK hynix, from the Verified End User list.

The change means Samsung’s NAND plant in Xi’an and SK hynix’s DRAM and NAND plants in Wuxi and Dalian will need U.S. approval for equipment imports starting in January.

The Commerce Department said the decision closes a loophole from the Biden era and puts all foreign firms on the same footing when exporting technology to China.

It added that no foreign-owned semiconductor plants in China will be granted VEU status in the future.
The department explained it will allow existing factories to maintain current operations but will not approve permits for capacity expansion or technology upgrades.

Industry watchers say the move could gradually weaken Korean chipmakers’ production in China as their facilities already run on older processes than those in Korea.

There are also concerns that delays in securing permits may disrupt timely equipment supply.
The Commerce Department estimated the new rule could lead to about one thousand additional export license requests each year.

Analysts warn the measure may restrict Korea’s chip production in China and could impact the broader economy depending on how strictly it is enforced.