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SK Hynix HQ in Icheon, South Korea. (Photo: Yonhap) |
[Alpha Biz= Kim Jisun] Seoul/Beijing/Washington, Sept. 2, 2025 — The U.S. government has announced that starting in January 2026, Samsung Electronics and SK Hynix will no longer be able to freely import U.S.-made semiconductor manufacturing equipment into their Chinese plants, intensifying concerns for Korean chipmakers caught in the middle of the U.S.-China technology rivalry.
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) said on August 29 that it will remove Samsung Semiconductor (China), SK Hynix Semiconductor (China), and Intel Semiconductor (China), acquired by SK Hynix, from its Validated End-User (VEU) list when the update is published in the Federal Register.
The VEU program allows trusted companies to import U.S. equipment without individual export licenses or time limits. Losing this status means Samsung and SK Hynix will need to obtain separate approvals for each shipment of U.S. equipment starting in January. While the BIS will allow equipment exports necessary for maintaining existing production, it will not approve shipments intended to expand capacity or upgrade technology.
This decision affects Samsung’s NAND flash plant in Xi’an and SK Hynix’s DRAM facility in Wuxi and NAND fab in Dalian, all of which will require U.S. government approval for new equipment imports from January onward.
China strongly objected. A spokesperson for the Ministry of Commerce warned on August 30: “China is closely watching the situation. This move, driven by selfish motives, weaponizes export controls and will have a significant negative impact on the stability of the global semiconductor industry and supply chains. China will take necessary measures to resolutely safeguard the legitimate rights and interests of its companies.”
Currently, Samsung’s and SK Hynix’s Chinese plants are understood to be producing chips using processes one to two generations behind their Korean fabs. Still, with added licensing procedures potentially delaying timely equipment supplies, uncertainty for the companies is expected to rise.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
