Washington Allows Samsung, SK Hynix to Ship Chipmaking Equipment to China in 2026
In Focus
- The U.S. government has introduced an annual approval system for equipment shipment
- Samsung and SK Hynix will not require individual licenses for each shipment
- China is an important production base for the two companies
Washington has issued annual licenses to Samsung Electronics and SK Hynix to export chip making equipment to their factories in China in 2026. According to Reuters, the approval of SK Hynix and Samsung chipmaking tool shipments to China offers the South Korean firms temporary relief.
Annual Approval System Replaces the VEU Status
The U.S. government introduced an annual approval system after revoking chip license waivers offered to TSMC, Samsung, and SK Hynix as part of U.S. export controls on semiconductor equipment. Previously, the tech companies had been granted the Validated End User (VEU) status.
This status allowed them to export American equipment to their plants in China without undergoing separate licensing procedures. In terms of production, the VEU status made chipmaking in China faster and more reliable for them. The status lapses on December 31, 2025, which means that shipment of American chip manufacturing equipment to facilities in China must be authorized by the government.
Before the U.S. revoked VEU status for Samsung and SK Hynix, there were reports that Washington was targeting allies’ chip operations in China as part of its trade backup plan as the tensions between the U.S. and China rose. The U.S. approval of chip manufacturing exports to China means the two companies will not require individual licenses for each equipment shipment.
How Does the Annual Approval System Work?
Under the annual approval system, chipmaking companies have to submit their yearly plans for review by the U.S. government. The plans should state the types of chip manufacturing equipment to be exported and the quantities required.
Tech companies must get approval on an annual basis. Analysts view the new approval system as less cumbersome compared to the previous one where licensing was required for each shipment.
Previously, the U.S. government estimated that the VEU status revocation would result in about 1,000 individual license applications per year. The U.S. approves Samsung’s chip tool shipments to China at a time when AI chip shortage is raising component prices.
Controlling China Access to American Technology
The U.S. government has been keen on limiting China’s access to advanced chip technology. To ensure this does not happen, President Donald Trump’s administration has been reassessing export controls that, in its view, had been relaxed under the previous administration.
In August 2025, the U.S. government started exploring ways to build location trackers into advanced AI chips. The move was aimed at controlling the flow of semiconductors developed by American tech companies like NVIDIA to the Chinese market.
China serves as an important production base for both Samsung and SK Hynix, particularly for memory chips. In recent months, prices of these chips have surged significantly as demand for AI data centers rises and supply tightens.
