U.S. Revokes Waiver for Samsung and SK Hynix, Tightening Grip on China Chip Supply Chain (Yonhap)
SEOUL, Aug. 30 (Korea Bizwire) — South Korea’s largest chipmakers are facing renewed uncertainty after the Trump administration moved to revoke a waiver that had allowed them to import U.S.-made semiconductor equipment into their factories in China without prior approval.
The U.S. Commerce Department announced that Samsung Electronics and SK Hynix will no longer be included in the “Verified End User” (VEU) program, effectively canceling a three-year-old exemption from sweeping U.S. export controls. The decision, industry officials said, is expected to disrupt operations at the companies’ major plants in China, where they produce a significant portion of memory chips for the global market.
Washington first imposed broad restrictions on advanced chip equipment sales to China in October 2022, but Samsung and SK Hynix had continued to operate under the waiver. Industry insiders warned that the withdrawal of VEU status will inevitably inflict short-term damage.
The move comes amid escalating U.S.-China tech rivalry under President Donald Trump’s second administration. Since taking office earlier this year, Trump has expanded export bans to cover not only advanced AI chips but also downgraded versions designed specifically for China. Domestic suppliers to Nvidia, including South Korea’s HBM (high-bandwidth memory) makers, have been collateral victims.
Trump has also floated tariffs of up to 100 percent on certain semiconductor imports, while simultaneously securing a 10 percent stake in Intel through subsidies converted into equity — making Washington the struggling chipmaker’s largest shareholder. He has suggested similar deals could be pursued with Samsung and Taiwan’s TSMC, though the White House later walked back the remarks.
Adding to the sense of unpredictability, Trump’s negotiating tactics have included temporarily blocking and then reinstating Nvidia and AMD’s sales to China in exchange for a share of Chinese revenue, an unprecedented move that unsettled the industry.
Although the Commerce Department granted a 120-day grace period and said equipment necessary to maintain existing capacity in China may still be imported, companies remain wary.
“The U.S. is issuing new semiconductor rules every few weeks, often shifting direction,” one industry official said. “What is clear is that Washington’s push to strengthen its own chip industry is unwavering, and we must prepare for all possible scenarios with long-term strategies.”
M. H. Lee (mhlee@koreabizwire.com)
