The U.S. has revoked the VEU authorization for three semiconductor companies in China, what does it mean?
On August 29, 2025, the U.S. announced the revocation of the “Validated End User” (VEU) authorization for three semiconductor companies in China. This is another export control measure taken by the U.S. in the high-tech sector, essentially aimed at restricting these companies in China from easily obtaining relevant U.S. technologies and products, attempting to curb the development of China’s semiconductor industry.
What is VEU? What does its removal mean?
“Validated End User” (VEU) is a special authorization system under the U.S. Export Administration Regulations. Companies included in this list can import controlled goods (such as advanced semiconductor manufacturing equipment, software, etc.) from the U.S. without the hassle of applying for export licenses for each transaction, significantly improving efficiency.
Once removed from the VEU list, it means
that controlled goods must be applied for license on a case-by-case basis: the previous “fast track” is gone, and for each batch of related items imported, an export license must be applied for from the U.S. Department of Commerce.
Supply chain efficiency decreases, and uncertainty increases: Applying for licenses requires time for approval, which may lead to delivery delays and disruptions in production plans. At the same time, the approval results are also uncertain, which may be rejected or come with stringent conditions.
Operational costs and risks increase: Applying for licenses incurs additional administrative and time costs. The risk of supply chain disruptions will also increase, potentially affecting normal production.
The potential impacts and dangers of this action
The U.S. action will bring some troubles to related companies, industries, and even broader areas:
1. Directly impact the operations of related companies: Intel, Samsung, and SK Hynix’s factories in China may face difficulties in obtaining equipment parts, and maintenance and upgrades may be hindered, affecting production efficiency and competitiveness.
2. Threaten the stability of the global semiconductor supply chain: The semiconductor industry is highly globalized, and a single action can affect the entire system. If the chips or memory produced by these companies face supply disruptions, it may impact multiple industries globally, including electronics, automotive, and communications. The Chinese side has also pointed out that this U.S. action “will have a significant adverse impact on the stability of the global semiconductor industry chain and supply chain.”
3. Damage U.S.-China economic and trade relations and the atmosphere of cooperation: This is another manifestation of the U.S. using export controls as a geopolitical tool, which will further weaken mutual trust between the U.S. and China and intensify friction and opposition in the technology sector.
4. May delay technological progress and innovation diffusion: Strict export controls may hinder normal technological exchanges and cooperation, which could have a negative impact on the overall progress and innovation diffusion of global semiconductor technology in the long run.
China’s response and countermeasures
The spokesperson for the Chinese Ministry of Commerce responded to this matter:
Qualitative: It pointed out that the U.S. action is “self-serving and instrumentalizing export controls.”
Consequences: It clearly stated that this will “have a significant adverse impact on the stability of the global semiconductor industry chain and supply chain.”
Attitude: Strongly opposed.
Demands: Urged the U.S. to immediately correct its erroneous practices.
Measures: It stated that China will “take necessary measures to firmly safeguard the legitimate rights and interests of enterprises.”
China may take a series of measures to respond, including but not limited to: providing necessary support and assistance to affected enterprises; communicating and negotiating with the U.S. through diplomatic channels; assessing and taking countermeasures as appropriate; accelerating the process of achieving self-control in key areas of the domestic semiconductor industry chain.
In summary
The U.S. revocation of VEU authorization for semiconductor companies like Samsung in China is another concrete action to suppress China’s high-tech industry using export control tools. In the short term, it will bring inconvenience and challenges to the operations of related companies; in the medium to long term, it aims to delay the pace of progress in China’s semiconductor industry and ensure the technological advantage of the U.S.
For China, this once again highlights the importance of enhancing the self-controllable capability of key core technologies. Achieving a high level of technological self-reliance is essential to truly grasp the initiative for development in a complex international environment.
Note: 1.Data cited in this article, screenshots and other information come from publicly disclosed documents, media reports, and public information.