The US government has updated general authorizations for Samsung Electronics and SK hynix, two major South Korean chip manufacturers, to continue supplying specific US semiconductor manufacturing equipment to their Chinese facilities. The Commerce Department's Bureau of Industry and Security (BIS) designated both companies as "validated end users (VEU)," easing licencing requirements for Korean firms operating in China. As a measure to slow Beijing's technological advancements, the United States imposed restrictions on exports of advanced chipmaking tools to Chinese facilities last October.

Samsung and SK hynix had previously been granted a one-year waiver, which was set to expire this month. The BIS explained that "Samsung's and SK hynix's PRC facilities are Validated End-Users. VEUs can apply for, and after national security review and approval by the U.S. government, obtain a general authorization to acquire certain items rather than seeking multiple individual licenses." PRC refers to China's official name, the People's Republic of China. The recent rule update specifies the items that can be exported to these companies under the VEU authorization.

Under Secretary of Commerce for Industry and Security Alan Estevez emphasised that the VEU programme is a critical tool for ensuring that the United States' national security objectives are met. He went on to say, "These authorizations are consistent with our close partnership with the Republic of Korea (ROK)." The Republic of Korea is South Korea's official name. He went on to emphasise the significance of this collaboration, pointing out that both countries and their companies play critical roles in the global semiconductor supply chain, particularly for memory chips.