The US is set to impose its third round of restrictions on China’s semiconductor industry in three years, a report has said. The new measures, expected to be announced on Monday, will target over 140 Chinese companies, including chip equipment maker Naura Technology Group, and impose stricter controls on exports of advanced technology.
Citing two people familiar with the matter, news agency Reuters reported that the latest effort is to hinder China’s progress in developing advanced chips.
Why US is imposing third wave of curbs on China
The latest reported move is one of the Biden administration’s last large-scale efforts to stymie China’s ability to access and produce chips, particularly those used in artificial intelligence and military applications, which the US views as a national security threat
Reuters says that the move, which comes just weeks before the swearing-in of Republican former president Donald Trump, is expected to be retained in the next regime.
What will be banned under new rules
According to the report, the restrictions will impact various aspects of China’s semiconductor industry, including:
Export controls on Chinese companies: Over 140 Chinese companies, including chip toolmakers Piotech and SiCarrier Technology, will face new export restrictions, limiting their access to critical US technology and equipment.
Advanced Memory Chip Restrictions: Shipments of high bandwidth memory (HBM) chips, crucial for AI training and other high-end applications, will be restricted.
Furthermore, the US will expand its authority to control exports of chipmaking equipment produced by US, Japanese, and Dutch companies in other countries to specific chip factories in China. This rule will apply to 16 Chinese companies considered critical to China’s advanced chipmaking goals.
Reuters report says that these measures will impact major US chip equipment makers like Lam Research, KLA, and Applied Materials, as well as international companies like ASML.
What is exempted from ban
According to the report, equipment made in Israel, Malaysia, Singapore, South Korea and Taiwan is subject to the new rule while Japan and the Netherlands will be exempt.
The expanded foreign direct product rule will apply to 16 companies on the entity list that are seen as the most important to China’s most advanced chipmaking ambitions.
What China has to say
China has expressed strong opposition to the US actions. Chinese foreign ministry spokesman Lin Jian said such behaviour undermined the international economic trade order and disrupted global supply chains, as per the report.
He added that China will take measures to safeguard the rights and interests of its firms.
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