Beijing Objects to BIS Removing Chip Factories From VEU List
The Bureau of Industry and Security's decision to remove the China-based factories of Samsung and SK hynix from its Validated End-User List is "selfish" and will hurt global semiconductor supply chains, China's Ministry of Commerce said last week, according to an unofficial translation.
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"The U.S. move, driven by selfish interests and instrumentalizing export controls, will have a significant negative impact on the stability of the global semiconductor industry chain and supply chain. China opposes this," a ministry spokesperson said in response to a reporter's question at a regular press conference Aug. 30. The U.S. should "immediately correct its wrongdoing and maintain the security and stability of the global industrial and supply chains. China will take necessary measures to resolutely safeguard the legitimate rights and interests of its businesses."
BIS plans to remove the Samsung- and SK hynix-related entries from the Validated End-User List on Dec. 31, which will make them ineligible for a general authorization that has allowed them to receive certain controlled technology for their Chinese factories (see 2508290006). BIS also called the list a "loophole" that gives certain foreign-owned chip companies a competitive advantage over American exporters.