US Considers Restrictions on Samsung, TSMC, SK Hynix China Chip Operations Amid Trade Talks

The U.S. government is considering new restrictions that could prevent major chip manufacturers Samsung, SK hynix, and TSMC from installing chipmaking tools in their China-based fabs by potentially canceling the validated end-user (VEU) program, which currently allows these companies to operate with special trade allowances. This move is part of broader U.S. efforts to limit China's access to advanced semiconductor technologies and is contingent on the outcome of ongoing trade negotiations between the U.S. and China. South Korea's Trade Minister Yeo Han-koo is set to raise concerns about these potential U.S. restrictions during upcoming trade talks in Washington, highlighting the industry's unease and the political and economic uncertainties affecting the negotiations. While the U.S. Department of Commerce has not finalized any decisions, the possible revocation of VEUs would significantly impact the operations of these foreign firms in China, where Samsung and TSMC have substantial manufacturing investments. The U.S. administration is maintaining this as a contingency measure to ensure China remains compliant with trade agreements. Both the White House and Commerce Department emphasize that the foreign chipmakers can currently continue operations in China, but the situation is under active review amid the evolving geopolitical and trade landscape.