US launching third crackdown on China's semiconductor industry, restricting exports to 140 companies

From Investing.com: 2024-12-02 00:06:10

The U.S. is set to launch a third crackdown on China’s semiconductor industry, restricting exports to 140 companies, including Naura Technology Group, Piotech, and SiCarrier Technology. The move aims to hinder Beijing’s chipmaking ambitions and prevent China from accessing advanced memory chips and chipmaking tools that could threaten U.S. national security.

The Biden Administration’s efforts come just before the inauguration of former president Donald Trump, who is expected to continue tough policies on China. The package includes restrictions on high bandwidth memory chips, additional chipmaking tools, and export restrictions on equipment from countries like Singapore and Malaysia, impacting companies such as Lam Research, KLA, and Applied Materials.

Nearly two dozen Chinese semiconductor companies, investment firms, and chipmaking tool makers will face new restrictions, including companies like Swaysure Technology Co and Qingdao SiEn that work with Huawei. China has been working towards self-sufficiency in the semiconductor sector, but remains behind industry leaders like Nvidia and ASML. Additional restrictions are expected for Semiconductor Manufacturing International, China’s largest contract chip manufacturer.

For the first time, the U.S. will add two investment companies to the entity list, Wise Road Capital and Wingtech Technology Co. Companies seeking licenses to ship to firms on the list are typically denied. The new package may impact U.S. allies as well, limiting what their companies can ship to China, particularly chipmaking equipment. Countries like Japan and the Netherlands will be exempt from the restrictions.

The U.S. will implement new rules restricting memory used in AI chips, particularly “HBM 2” technology made by Samsung, SK Hynix, and Micron. Samsung Electronics is expected to be impacted. These rules mark the third major package of chip-related export restrictions on China under the Biden administration, following previous efforts in 2022 to curb high-end chip sales and manufacturing.



Read more at Investing.com: Exclusive-Latest US strike on China’s chips hits semiconductor toolmakers By Reuters