BIS Ending Validated End User (VEU) Program

Sep. 2, 2025
By: Marvin E. McPherson

The U.S. Department of Commerce announced a significant sweep regarding its Validated End-User (VEU) Program. The Biden-era program facilitated streamlined access to U.S.-origin semiconductor technology for vetted facilities in China.

The VEU program allows authorized entities to build and operate data centers under specific conditions. Universal VEUs must retain a majority of their controlled chips within the U.S. and partner countries, while National VEUs can operate in specified non-embargoed locations. There are provided license exceptions however, there are limitation on the total TPP volume of exports and reexports per calendar year by all exporters and re-exporters to any individual ultimate consignee which may not exceed 26,900,000 TPP volume limit.

BIS filing in the Federal Register formally removes Intel Semiconductor (Dalian) Ltd; Samsung China Semiconductor Co. Ltd; and SK hynix Semiconductor (China) Ltd from the VEU program, effective December 31, 2025. In tandem, a BIS press release flagged this action as the closure of a “Biden-era loophole” that had allowed these foreign-owned semiconductor fabs in China to import U.S. technology license-free; under the new regime, these companies must now submit individual export license applications, with expansions and upgrades. The license review is under the presumption of denial.

The move marks the Trump administrations first toward tightening access to chips from China. If you have any questions surrounding the expanded restrictions of exports, please contact any attorney at Barnes Richardson & Colburn, LLP.