The Trump administration has decided to end the waiver that allowed Samsung Electronics and SK hynix to bring U.S. semiconductor equipment into their factories in China without needing individual approval.

The U.S. Commerce Department’s Bureau of Industry and Security said it will remove Samsung, SK hynix, and Intel Semiconductor in Dalian, now owned by SK hynix, from the Verified End User(VEU) list.

This change means Samsung’s NAND plant in Xi’an, along with SK hynix’s DRAM and NAND plants in Wuxi and Dalian, will require U.S. approval for any equipment imports starting in January.

The Commerce Department said the decision was aimed at closing a "loophole" from the Biden era, and puts all foreign firms on the same footing when it comes to exporting technology to China. It added that no foreign-owned semiconductor plants in China will be granted VEU status in the future.

While existing factories will be allowed to keep running, Washington said it won’t issue permits for capacity expansion or technology upgrades.

Industry watchers say the move could gradually weaken Korean chipmakers’ production in China, as their local facilities are already operating on older technology compared to those in Korea.

There are also concerns that the approval process could cause delays in getting critical equipment on time.

The Commerce Department estimated the new rule could lead to about one thousand additional export license requests each year.