U.S. Removes Three Semiconductor Companies in China from Special Export List
Estimated reading time: 5–7 minutes
On September 2, 2025, the U.S. Department of Commerce made new changes to export rules for companies in China. These changes were published in the Federal Register.
The Bureau of Industry and Security (BIS) has removed Intel Semiconductor (Dalian) Ltd, Samsung China Semiconductor Co. Ltd, and SK hynix Semiconductor (China) Ltd from the Validated End-User (VEU) authorizations list.
This new rule will take effect on December 31, 2025.
What Is the VEU List?
The VEU list lets approved companies in certain countries get some U.S. items without needing extra export licenses. These companies are checked and approved by a group of U.S. government agencies.
A company on the VEU list can receive certain items, like hardware, software, and technology, more easily. Items tied to missile technology or crime control are not included.
What Changed?
The End-User Review Committee (ERC), which checks and approves VEUs, has decided to remove the three semiconductor companies from China from the VEU program. This means these companies will no longer have the special permission to receive certain U.S.-controlled exports without extra review.
Legal Background
These changes are made based on the Export Control Reform Act of 2018. This law allows the U.S. government to control exports for reasons related to national security and foreign policy.
Section 1753 and Section 1754 of the law allow the government to control which items can be sent overseas and to which companies. The government can do this without public notice before the rule is final.
Impact
Starting December 31, 2025, Intel Semiconductor (Dalian) Ltd, Samsung China Semiconductor Co. Ltd, and SK hynix Semiconductor (China) Ltd will need to apply for export licenses like other companies, without the easier process from the VEU program.
BIS expects this rule to create about 1,000 more export license applications each year. This would add about 495 hours of extra work, but this is within normal expectations.
Other Details
The rule is not considered major under Executive Order 12866 and does not have federalism impacts. It is also not subject to the regulatory steps that usually let the public comment first.
Next Steps
The official removal appears in 15 CFR Part 748. The names of the three companies will be taken off the VEU list in the regulations.
This change was announced by Julia A. Khersonsky, Deputy Assistant Secretary for Strategic Trade at the Department of Commerce.
Legal Disclaimer
This article includes content collected from the Federal Register (federalregister.gov). The content is not an official government publication. This article is for informational purposes only and does not constitute legal advice. For case-specific consultation, please contact us. Read our full Legal Disclaimer, which also includes information on translation accuracy.
