On August 29, Bloomberg reported that the U.S. government announced it will revoke special exemptions allowing Samsung Electronics, SK Hynix, and Intel to use American technology in their China-based facilities, setting a 120-day grace period.

According to the Federal Register, these exemptions will expire after 120 days. After that, any continued import of chip manufacturing equipment will require individual licensing. This move modifies the existing "Validated End-User" (VEU) rules and could restrict chip production in China, potentially limiting Beijing's access to certain technologies.

The U.S. Department of Commerce emphasized that it will not approve licenses that allow companies to "expand capacity or upgrade technology" at Chinese sites, signaling a firm stance on tightening export controls. Jeffrey Kessler, the Commerce Department's Deputy Assistant Secretary for Export Administration, noted that the administration is committed to closing export control loopholes and preventing U.S. firms from facing competitive disadvantages, with this decision being a key step toward that goal.

Samsung and SK Hynix rely heavily on their China operations, where they operate large memory wafer plants supplying components for smartphones and consumer electronics. Intel, which has a presence in Dalian, will also be affected. Foreign media reports indicate that these Korean and American chipmakers have not yet responded.