United States' decision to withdraw exemptions for Intel, Samsung, and SK Hynix in regards to semiconductor export restrictions drawing strong criticisms from China.

In a move that is seen as part of Washington's broader strategy to contain China's rise in advanced technology, the US Department of Commerce has decided to revoke the Verified End-User (VEU) waivers for three major Chinese semiconductor manufacturers: Intel Semiconductor (Dalian) Co Ltd, Samsung China Semiconductor Co Ltd, and SK Hynix Semiconductor (China) Ltd.

The VEU system, a U.S. government program introduced as part of U.S. export controls to manage technology transfer and national security, allowed certain foreign semiconductor manufacturers to export most U.S.-origin goods, software, and technology license-free to manufacture semiconductors in China. However, the recent decision to abolish the VEU waivers is aimed at closing loopholes and restricting China's semiconductor industry development.

The revocation highlights the intensifying struggle over the semiconductor sector, a sector central to military, economic, and technological power. China's Ministry of Commerce has condemned this decision, calling it a misuse of export controls that threatens global supply chains. Beijing has promised to take "necessary measures to firmly safeguard the legitimate rights and interests of its enterprises" in response to the revocation.

Officials argue that the previous waivers effectively supported foreign competitors without yielding reciprocal benefits for U.S. manufacturers. The US Commerce Department has stated it has no intention of granting licenses that would allow companies to expand capacity or upgrade technology at their manufacturing facilities in China. The companies have 120 days before the waivers expire, after which they must apply for individual licenses to continue importing necessary equipment.

The decision poses risks for Samsung Electronics and SK Hynix, both of which rely heavily on China for memory chip production. The announcement also affects a former Intel unit in Dalian, now owned by SK Hynix. SK Hynix has stated it will maintain close communication with both the South Korean and US governments to minimize the impact on its operations.

The US insists the restrictions are vital to protect national security and competitiveness. The revocation is intended to limit Beijing's ability to access advanced technologies while bolstering America's strategic edge in semiconductor innovation. Under Secretary of Commerce Jeffrey Kessler stated that the step is part of a broader effort to tighten export controls that had disadvantaged American firms.

The move has been described as "driven by self-interest" and turning export controls into a political weapon. However, the US maintains that it is acting in the best interests of its own industries and national security. The semiconductor industry, a critical component in numerous technological advancements, is becoming a battleground in the ongoing competition between the world's two largest economies.

United States' decision to withdraw exemptions for Intel, Samsung, and SK Hynix in regards to semiconductor export restrictions drawing strong criticisms from China.