On August 29, the U.S. Department of Commerce removed Intel Semiconductor Co., Ltd., Samsung China Semiconductor Co., Ltd. and SK Healyce Semiconductor Co., Ltd. from the "Experience Certificate Ultimate User" (VEU) authorization list. A spokesman for the Ministry of Commerce of China said on August 30, China urged the U.S. side to immediately correct the wrong practices and safeguard the security and stability of the global industrial supply chain.

The U.S. Department of Commerce has imposed strict controls on U.S. semiconductor equipment exports to China since 2022, but the two South Korean companies were exempted.The U.S. Department of Commerce¡¯s Bureau of Industry and Security (BIS) on August 29 described the latest initiative as ¡°a loophole to block the Biden era.¡±

BIS that the Biden government expanded its VEU licensing list in 2023 to allow a small number of foreign semiconductor manufacturers without a license to bring most of U.S. goods, software and technology into China for semiconductor production. The latest decision will no longer allow any foreign semiconductor manufacturer to enjoy this ¡°privilegy¡±. The news also said that the cancelled licensed companies will have 120 days to apply and obtain export licenses, and the future BIS will approve export license applications to allow them to operate their existing plants in China, but does not intend to approve its application for expanding capacity or upgrading technology in China. U.S. Department of Commerce Deputy Secretary for Industrial Security and Security Keysler said on August 29: ¡°The Trump administration is committed to blocking export control gaps

According to a Reuters report on August 31, although Intel also lost this exemption, the company has sold its factory in Dalian this year. SK Hynix said in a statement that it would keep close communication with the governments of South Korea and the United States and take necessary measures to minimize the impact on the company's business. Samsung has not responded to requests for comment. South Korea's Ministry of Trade, Industry and Energy stated that the South Korean government has explained to the U.S. Department of Commerce "the importance of the stable operation of the country's semiconductor companies in China to the stability of the global semiconductor supply chain." The South Korean side will continue to discuss with the U.S. side to minimize the impact on South Korea. corporate impact.

According to reports, as early as June this year, the US media reported that the US Department of Commerce was considering the possibility of revoking the exemptions for South Korean companies in China. However, in order to prevent the collapse of trade negotiations between the two countries, White House officials said at the time that the United States was "just laying the foundation." The Wall Street Journal said the U.S. government hopes to make it more difficult for these semiconductor giants to operate in China through this move, but it may complicate ongoing trade discussions between the United States and South Korea. U.S. President Trump met with South Korean President Lee Myung on August 25 to discuss advancing a trade agreement between the two countries. Many analysts said it was difficult to say what prompted the latest move.

The South Korean Economic Daily cited sources in the industry in Seoul as saying that the move would force Samsung and SK Healeys to produce traditional chips in China, while the United States restricted Korean manufacturers to upgrade capacity and technological development in China, which could spur China's domestic semiconductor industry to seek its own growth. The source also said that the latest U.S. initiatives could disrupt Samsung and SK Healeys production in China. Because equipment needs to be regularly replaced andined, if the U.S. government has to get approval in advance each time in the future, these companies will take 3 to 9 months to purchase equipment and the delay of equipment will inevitably require us to make strategic adjustments to China's production line," the source said.

A spokesperson for the Chinese Ministry of Commerce expressed opposition to the latest US move on August 30. The spokesperson said that semiconductors are a highly globalized industry. After decades of development, an industrial pattern in which you have me and I have you has formed. This is the result of the combined effect of market laws and corporate choices. The US move is self-serving and instrumentalizes export control, which will have an important and adverse impact on the stability of the global semiconductor supply chain.