Samsung's semiconductor plant in China. Yonhap News. 

It has been reported that the U.S. Donald Trump administration is actively considering a plan to allow Samsung Electronics and SK Hynix to export U.S.-made semiconductor manufacturing equipment to their plants in China.

Bloomberg News reported on the 7th (local time), citing sources, that the U.S. Department of Commerce proposed to the South Korean government last week that it could permit the export of such equipment by approving the volume of equipment exports to South Korean semiconductor plants in China on an annual basis.

Until now, semiconductor plants operated by Korean companies in China had been included in the "Validated End-User" (VEU) list maintained by the U.S. Department of Commerce's Bureau of Industry and Security (BIS), allowing for the import of U.S.-made equipment without issue.

The VEU status is an exceptional designation that allows companies to be supplied with U.S.-made equipment without separate licensing procedures or time limitations, provided they meet certain security conditions.

However, the Trump administration recently removed the Chinese plants of Samsung and SK Hynix from the VEU list.

This led to growing concerns that the stable operation of Samsung Electronics' and SK Hynix's plants in China might be jeopardized in the future.

Given this situation, the Trump administration intends to introduce a system that requires separate annual approvals instead of the indefinite VEU status.

While the introduction of the new system would allow Samsung Electronics and SK Hynix to continue operating their plants in China, some point out that it could significantly increase administrative burdens as approvals must be obtained every year.

This is because it is difficult for companies to accurately predict the parts required for repairing production equipment that might break down over the next 12 months.

Furthermore, it is known that even if the U.S. government allows annual equipment exports, it intends to prohibit the export of equipment that could be used for the expansion or upgrading of the plants in China.

Meanwhile, Samsung Electronics and the South Korean Ministry of Trade, Industry and Energy declined to comment on Bloomberg's request. SK Hynix did not provide an immediate response.

Yonhap News