US Tightens Restrictions on China's Semiconductor Industry
The United States has launched a new set of export restrictions targeting China's semiconductor industry. This move is part of the Biden administration's efforts to limit China's ability to produce advanced chips which are crucial for AI and military applications. The new restrictions will affect 140 companies. This includes major Chinese chip toolmakers like Naura Technology Group, Piotech and SiCarrier Technology.
This is the third crackdown in three years aimed at curbing China's chipmaking ambitions. The package includes curbs on China bound shipments of high bandwidth memory chips which are much needed for high end applications like AI training. It also includes new curbs on 24 additional chipmaking tools and three software tools. The tool controls will likely hurt Lam Research, KLA and Applied Materials as well as non US companies like Dutch equipment maker ASM International.
Among Chinese companies facing new restrictions are nearly two dozen semiconductor companies, two investment companies and over 100 chipmaking tool makers. US lawmakers say some of the companies including Swaysure Technology Co, Qingdao SiEn and Shenzhen Pensun Technology Co work with China's Huawei Technologies. They are the telecommunications equipment leader once hobbled by US sanctions and now at the center of China's advanced chip production and development.
China has responded by saying these actions disrupt global supply chains and undermine international trade. They plan to take measures to protect their companies' interests.
The US is also targeting shipments of advanced memory chips and chipmaking tools from other countries like Singapore and Malaysia. The goal is to protect US national security by preventing China from advancing its semiconductor capabilities.
