US Makes It Easier for Samsung to Run Chip Operations in China

The US government has now made it easier for Samsung to continue operating its semiconductor factories in China. The Korean firm can import US-made equipment under a new annual approval system, reducing the risk of delays (because of the removal of VEU status). However, strict limits on equipment exports for factory expansion in China remain in place.

Samsung breathes a sigh of relief thanks to the US’s annual approval system 

In August 2025, the US Department of Commerce’s Bureau of Industry and Security (BIS) announced that it would tighten export controls on semiconductor equipment sent to China. BIS said it will remove “Verified End User” (VEU) status from several foreign-owned semiconductor fabrication plants in China. This includes Samsung’s NAND plant in Xi’an that produces over 10 percent of the world’s flash storage.

For the uninitiated, VEU status allows trusted companies to import US-made equipment without applying for individual licenses for each shipment. For years, this status helped Samsung operate its Xi’an plant smoothly. However, now that the company is losing its VEU status, it raises concerns about slowing down equipment deliveries.

This measure will take effect on 31st December 2025, after a 120-day grace period. During this time, the South Korean government appears to have worked closely with US authorities to reduce the impact on Samsung and other Korean chipmakers. The government previously told the Commerce Department that stable operations at Korean semiconductor factories in China are important to the global supply chain.

Now it looks like those steps have paid off. Before the new rules take effect, the US government has reportedly adjusted its policy to ease the burden for Korean semiconductor companies’ Chinese factories. BIS has introduced a new approval system under which it will review the exports of semiconductor manufacturing equipment to China annually. Note that exports of tools for factory expansion will still not be allowed.