News Analysis
Washington is closing a loophole that let a handful of foreign-owned chipmakers ship most U.S.-origin tools, software, and technology into their China fabrication plants without licenses—a fast-track privilege no U.S.-owned fab ever had.
Analysts say the move could slow advancement in Chinese fabs and further inflame the U.S.–China tech rivalry. As Beijing applies “case-by-case” screening over rare-earth exports, they say, Washington will now apply the same logic to chip tools bound for China.
The Commerce Department’s Bureau of Industry and Security (BIS) announced on Aug. 29 that it will terminate the Validated End-User (VEU) program after a 120-day transition, with full effect on Dec. 31. The decision puts every future shipment under a license, tightening U.S. control over what tools and technologies reach Chinese production lines….