Washington, Aug 30
The US Commerce Department has announced a plan to strip South Korean tech firms Samsung Electronics and SK hynix of "validated end-user (VEU)" status, a move that will require them to secure licenses for sending certain US chipmaking equipment to their plants in China.
On the Federal Register, the department's Bureau of Industry and Security said it will revise the existing VEU authorisations list for China by removing the companies as well as Intel Semiconductor Ltd.
The department stressed its intention not to grant licenses to expand their capacity or upgrade technology at plants in China, reports news agency.
During the previous Biden administration, Samsung Electronics and SK hynix were designated as VEUs, a status that reduces the licensing burden on the companies by allowing them to ship certain U.S. semiconductor equipment to pre-approved sites under a general authorisation instead of individual export licenses.