U.S. Removes Major Chipmakers from Export List in China
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On September 2, 2025, the Bureau of Industry and Security (BIS), part of the U.S. Department of Commerce, released a final rule about exports to China. This rule changes the Export Administration Regulations (EAR).
The main change is the removal of three companies from the Validated End-User (VEU) list in China. The companies are Intel Semiconductor (Dalian) Ltd, Samsung China Semiconductor Co. Ltd, and SK hynix Semiconductor (China) Ltd. The VEU program allowed approved companies in certain countries to receive U.S. goods, software, and technology with less paperwork. They did not need an export license for eligible items.
These three companies will no longer have this special status after December 31, 2025. Suppliers will now need to submit license applications to export, reexport, or transfer certain U.S.-controlled items to them in China.
The VEU program is explained in 15 CFR 748.15 of the EAR. It helps companies in eligible countries get specific U.S. items more easily. The U.S. government checks and approves VEUs, making sure they follow U.S. export rules.
The End-User Review Committee (ERC) administers the VEU program. It includes people from the Departments of State, Defense, Energy, Commerce, and other agencies.
The change is allowed by the Export Control Reform Act of 2018 (ECRA), part of the John S. McCain National Defense Authorization Act for Fiscal Year 2019. ECRA allows the BIS to regulate exports from the U.S. and to make changes through final rules without needing public comments before approval.
The rule is not a significant regulatory action. It does not have federalism implications and is exempt from several administrative rulemaking requirements. These include the need for proposed rulemaking, public participation, and a regulatory flexibility analysis.
BIS estimates that removing these companies will create about 1,000 more license applications each year. This will add about 495 hours of paperwork, which fits within current estimates for federal collections of information.
The final rule removes entries for Intel Semiconductor (Dalian) Ltd, Samsung China Semiconductor Co. Ltd, and SK hynix Semiconductor (China) Ltd from Supplement No. 7 to Part 748 of the EAR.
This rule was signed by Julia A. Khersonsky, Deputy Assistant Secretary for Strategic Trade.
The rule takes effect on December 31, 2025.
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