US tightening semiconductor restrictions on China, targeting 140 entities

From Investing.com: 2024-12-02 00:35:43

The U.S. is set to crack down on China’s semiconductor industry with new export restrictions targeting 140 entities, including bans on chip equipment firms like NAURA Technology and Piotech. Key suppliers like Lam Research and KLA Corporation could be impacted, with additional restrictions on Semiconductor Manufacturing International Corp and Chinese private equity firms Wise Road Capital and Wingtech Technology.

The Biden administration’s move reflects ongoing efforts to curb Beijing’s chipmaking capabilities before Trump takes office, focusing on national security concerns related to AI-driven military advancements in China. Additional restrictions will be placed on SMIC, Wise Road Capital, and Wingtech Technology, with updates to foreign direct product rules affecting chipmaking equipment from countries like Malaysia and South Korea. Japan and the Netherlands are exempt.

These new measures follow previous restrictions limiting China’s access to advanced chips and technology, positioning the country years behind global leaders like NVIDIA and ASML. The U.S. will also impose restrictions on memory technology used in AI chips, targeting companies like Samsung Electronics, SK Hynix, and Micron Technology. Samsung Electronics is expected to be primarily affected by this particular rule.



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