"The US government already has a lot to say about what products chipmakers can and can't sell in China. This week the Commerce Department moved to make it harder for South Korean memory vendors Samsung and SK Hynix to continue manufacturing in the region. In a notice [ PDF] published in the Federal Register, the Commerce Department announced it had terminated the chipmaker's verified end user (VEU) status."
"Samsung and SK Hynix are two of the largest producers of DRAM and NAND flash memory in the world, and maintain a considerable presence in China. According to South Korean media, Samsung's manufacturing plant in Xian, China, accounts for roughly 40 percent of its NAND flash production. Meanwhile SK Hynix produces about 40 percent of its DRAM at a facility in Wuxi."
"The companies now have 120 days to obtain the necessary licenses in order to continue furnishing their Chinese plants, chipmaking equipment and other controlled products. What tribute Samsung or SK Hynix will have to make in order to convince the Trump administration to grant these licenses remains to be seen. For reference, Nvidia and AMD have agreed to a 15 percent tax on H20 and MI308 sales to the Middle Kingdom in order to secure export licenses."
The Commerce Department terminated Samsung and SK Hynix's verified end user (VEU) status, removing their ability to bypass US license requirements for controlled chip products. The VEU program had allowed vetted companies to import, transfer, and re-export items normally subject to US licenses. Samsung's Xian NAND flash plant supplies roughly 40 percent of its NAND production, and SK Hynix produces about 40 percent of its DRAM at Wuxi. Intel's regional memory facilities were sold to SK Hynix this spring. The companies have 120 days to secure export licenses to continue supplying Chinese plants and equipment. Late last year, the Biden administration moved to restrict the sale of advanced high-bandwidth memory (HBM) used in AI accelerators.
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