The United States is set to implement its third crackdown on China’s semiconductor industry, which will restrict exports to 140 Chinese companies, including Naura Technology Group, Piotech, and SiCarrier Technology. This action is part of the Biden administration’s efforts to curb China’s ability to advance its semiconductor production, particularly for military applications and AI, which could pose a threat to U.S. national security.
The new restrictions target the shipment of high-bandwidth memory (HBM) chips, crucial for AI training, along with 24 chipmaking tools and software. This will impact companies like Lam Research, KLA, Applied Materials, and Dutch firm ASM International. Additionally, Chinese companies such as Swaysure Technology Co, Qingdao SiEn, and Shenzhen Pensun Technology Co, which work with Huawei Technologies, will be added to the U.S. Entity List, preventing U.S. companies from supplying them without special licenses.
In response, China criticized the U.S. for disrupting global supply chains and vowed to protect its companies’ interests. The U.S. is also expanding its “foreign direct product rule,” which will affect chipmaking equipment from Japan, the Netherlands, and other countries when shipped to Chinese plants, though Japan and the Netherlands will be exempt.
Despite these efforts, China is working to achieve self-sufficiency in semiconductors, though it remains far behind industry leaders like Nvidia and ASML.
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