US has now shown green flag to Samsung and SK Hynix for shipping their chip tools to China in 2026. Following the Nvidia H200 sales agreement, the foreign authorities now approved other firms to supply chipmaking technologies to the rival country.
Why is this special news? Let’s check on the flashback.
Samsung and SK Hynix used to sell older fabrication tools to the Chinese clients under the “Verified End User” (VEU) standard from the US. The respective equipment enabled the customers to make less advanced chips.
Although things turned around in March 2024 when the US pressured Samsung and SK Hynix to stop selling their used (outdated) chipmaking tools to China.
The foreign authorities took this step due to concerns over potential ban violations. It further ordered the companies to stockpile the tools instead of shipping them.
The situation worsened in August 2025 when the US Commerce Department canceled the VEU. As a result, Samsung and SK Hynix were restricted from enhancing or expanding their China-based facilities with the US-made technologies.
Latest Move: Relief
As for now, the US has granted licences to Samsung and SK Hynix to sell their chip tools in China next year. Notably, it’s a temporary relief for the specific companies as they will need to obtain licenses to buy the chipset equipment for China.
Samsung would now be able to export US-origin tech for the operation of its semiconductor factory in China on an annual basis. But the twist is, the firm has to take individual approval from the US every time they need to sell the tools.
This is so as the US’s VEU status for these companies will end on the 31st of December (tomorrow). How much this new move will help Samsung, SK Hynix, and the Chinese clients in 2026 will be worth looking forward to!
(Image Credits: Samsung)
[source – sammyfans]
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