The US government is weighing a new export-control regime that would replace blanket waivers for Samsung and SK hynix with annual permits to supply chipmaking tools to their Chinese factories.

It’s a move that adds red tape but stops short of cutting off supply.

Intel, Samsung, SK hynix and TSMC all received Biden-era fast-track approvals, known as ‘Validated End-User’ (VEU) status, allowing them to keep running their Chinese fabs despite Washington’s 2022 export bans.

Trump administration officials reportedly view the old VEU framework as a “loophole” from the Biden era.

Those authorisations, which let the firms import advanced wafer-fab equipment once compliance checks were met, are due to expire at the end of 2025

Bloomberg reports the Commerce Department has told South Korean officials it is considering a new “site licence” system.

Under the new system, Samsung and SK hynix would apply once a year for permission to import a fixed list of tools and materials, specifying quantities in advance.

The US is OK with ‘commodity chips’ being made in China, but not sophisticated ones

The aim is to keep memory chip production steady – DRAM for everyday computing and NAND for flash storage – while preventing upgrades that could give China access to more advanced manufacturing tools.

South Korean officials and company executives worry the licences will be too rigid, particularly if equipment breaks down outside the pre-approved list.

US officials say emergency licences can be granted quickly, but industry doubts remain.

The policy debate comes as Washington tightens its grip on exports of tools capable of making logic chips below 16nm, DRAM with features smaller than 18nm, and 3D NAND with more than 128 layers.

These thresholds are designed to block China’s progress into advanced, high-performance chips, the type needed for artificial intelligence, military systems and supercomputing.

Analysts say a site-licence compromise may be the least disruptive path. Processing thousands of one-off licence applications would be unworkable, while an outright ban could destabilise global memory markets.

For now, Washington wants greater visibility into what enters Chinese fabs – especially those owned by allies such as South Korea — without triggering a supply shock.