US Imposes New Restrictions on China's Semiconductor Industry, Impacting Toolmakers
US imposes new export restrictions on China's semiconductor industry, targeting 140 companies. Restrictions impact Chinese chip toolmakers and shipments of advanced memory chips and chipmaking tools. Measures aim to hinder China's chipmaking ambitions related to military applications and national security.
This move aims to hinder Beijing's chipmaking ambitions and affects Chinese chip toolmakers Piotech, ACM Research, and SICarrier Technology with new export limitations. The restrictions also target shipments of advanced memory chips and additional chipmaking tools destined for China.
This action is part of the Biden administration's strategy to limit China's access to chip production, particularly in areas that could enhance military applications or pose a threat to US national security. The measures come just before the inauguration of President-elect Donald Trump, who is expected to continue the tough stance on China initiated by the current administration.
The export restrictions include curbs on high bandwidth memory chips crucial for applications like AI training, limitations on 24 additional chipmaking tools and three software tools, and new export controls on chipmaking equipment manufactured in countries such as Singapore and Malaysia. Commerce Secretary Gina Raimondo stated that the goal is to prevent China from bolstering its domestic semiconductor manufacturing capabilities to support military modernisation.
The restrictions are expected to impact companies like Lam Research, KLA, and Applied Materials, as well as non-US firms such as Dutch equipment maker ASM International. Chinese entities facing new restrictions include nearly two dozen semiconductor companies, two investment firms, and over 100 chipmaking tool manufacturers. Notable companies affected include Swaysure Technology Co, Si'En Qingdao, and Shenzhen Pensun Technology Co, which collaborate with Huawei Technologies.
In response to the US curbs, Chinese officials criticised the move, stating that it undermines international trade order and disrupts global supply chains. China's commerce ministry labelled the restrictions as "economic coercion" and "non-market practices," emphasising its commitment to safeguarding the interests of Chinese companies. China has been striving for self-sufficiency in the semiconductor industry, aiming to reduce reliance on imported advanced chips and manufacturing tools.
The US is also set to impose additional restrictions on Semiconductor Manufacturing International Co., China's largest contract chip manufacturer. The new measures include adding three companies that invest in chips to the entity list, citing their involvement in supporting China's semiconductor manufacturing capabilities critical to defence industrial bases. The expanded foreign direct product rule will limit exports of chipmaking equipment to certain Chinese chip plants, affecting companies from the US, Japan, and the Netherlands.
ASML, a key chip equipment maker in the Netherlands, stated that it does not foresee a significant impact on its business due to the new restrictions. The US plans to exempt countries that implement similar controls. The latest rules represent the third major package of chip-related export curbs on China under the Biden administration, following a significant shift in US tech policy towards China in October 2022.
US imposes new export restrictions on China's semiconductor industry, targeting 140 companies.
Restrictions impact Chinese chip toolmakers and shipments of advanced memory chips and chipmaking tools.
Measures aim to hinder China's chipmaking ambitions related to military applications and national security.
Source: REUTERS