The US revoked Samsung, SK Hynix, and Intel's VEU exemption in China, and the window for localization of memory has opened again
On August 30th, reporters discovered through Federal Register filings dated August 29, 2025, that the Trump administration has decided to revoke the Validated End-User (VEU) authorizations for Samsung Electronics and SK Hynix's operations in China. This policy change, effective 120 days after the announcement, aims to further restrict China's access to advanced chip manufacturing technology and could exacerbate tensions in the global semiconductor supply chain. Wang Shuyi, chief analyst at Discovery Technology, told reporters that Samsung and Hynix have significant production capacity in China. If the US completely cuts off the supply chain, it would be difficult to find non-US alternatives in the short term, and there would be insufficient time to relocate existing production capacity, potentially leading to tight memory supply.