US revokes validated end-user program for China chipmaking equipment

The U.S. Commerce Department has revoked special authorizations that allowed Samsung Electronics, SK Hynix and a former Intel unit to import American chipmaking equipment for use in their Chinese fabs, a move that will require the companies to obtain individual export licenses within 120 days and could complicate memory-chip production in China. The change, published in the Federal Register, takes effect after the 120-day period and officials said it is aimed at closing what Washington has characterized as loopholes that allowed upgrades and capacity expansion without case-by-case review.

The department said it will not grant licenses that would permit companies to expand capacity or upgrade technology at manufacturing facilities in China. Under Secretary of Commerce Jeffrey Kessler said the decision is an important step toward fulfilling the administration's commitment to close export-control gaps and to prevent U.S. technologies from giving foreign competitors an unfair advantage. Companies affected can apply for licenses but there is no guarantee of approval, the notice said.

The authorization program being revoked, known as the validated end user program, had previously...