The United States has decided to allow exports of its semiconductor manufacturing equipment to Samsung Electronics and SK hynix factories in China without a separate approval process. The U.S. government has designated Samsung Electronics and SK hynix's chip factories in China as "verified end users (VEU)," which would reduce the licensing burden on them by allowing U.S. exporters to ship designated items to preapproved entities. The U.S. government has already notified its decision to the two South Korean companies, and it takes effect immediately. In October last year, the U.S. announced a set of rules that restrict exports of certain advanced semiconductor manufacturing equipment.Samsung Electronics and SK hynix received a one-year waiver amid concerns that the move would disrupt their businesses in China, but the latest decision clears uncertainties over their chip production in China, which partly relies on U.S. equipment.
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