Overview

• The Commerce Department’s BIS removed VEU status for Samsung, SK hynix and an Intel unit in a Sept. 2 Federal Register notice, framing the move as closing a “Biden-era loophole.”
• The change takes effect 120 days after publication, giving companies a grace period to apply for individual export licenses to keep equipment flowing to Chinese sites.
• Officials said they intend to approve licenses that sustain current operations in China but not those that would add capacity or advance process technology.
• South Korea’s industry ministry said it was briefed in advance and will work with Washington to minimize disruption for Korean chipmakers.
• U.S. tool suppliers KLA, Lam Research and Applied Materials are expected to see reduced China sales, and heavy output from Samsung’s Xi’an NAND and SK hynix’s Wuxi DRAM fabs heightens supply‑risk concerns.