The United States has intensified its campaign against China’s semiconductor ambitions with a new wave of export restrictions targeting chipmaking tools, high-bandwidth memory (HBM) technology, and a growing list of companies. The Commerce Department’s latest measures, unveiled Monday, add 140 firms to the Entity List, including chip toolmakers and key players in China’s advanced chip supply chain, further restricting their access to U.S. technology without special licenses.
The rules notably hit U.S. semiconductor equipment firms such as Lam Research (LRCX), KLA (KLAC), and Applied Materials (AMAT), alongside Dutch giant ASML. These companies face stricter export controls to China and restrictions on overseas shipments of U.S.-linked equipment. The expanded foreign direct product rule exempts Japanese and Dutch manufacturers but impacts equipment produced in countries like South Korea and Taiwan. Meanwhile, U.S. Commerce Secretary Gina Raimondo reiterated that the actions aim to prevent China from leveraging semiconductor advances to bolster its military capabilities.
Market Overview:
- Lam Research, KLA, and Applied Materials face intensified export curbs
- China’s top memory makers face restrictions on HBM chips
- Dutch and Japanese manufacturers exempt from certain restrictions
Key Points:
- New rules expand U.S. control over global shipments containing American technology
- Entity List adds major Chinese semiconductor firms and investment companies
- Commerce Department targets Samsung’s HBM sales to China
Looking Ahead:
- Chipmakers like Nvidia and Micron could gain from Chinese production constraints
- Geopolitical tensions likely to spur further self-sufficiency efforts by China
- Key global suppliers expected to adapt to evolving regulatory landscape
The measures arrive as the U.S. also limits access to HBM technology critical for artificial intelligence chips. Analysts expect South Korea’s Samsung Electronics, a leading HBM supplier, to be disproportionately affected, with an estimated 30% of its sales tied to China. The restrictions could complicate operations for Chinese companies such as Semiconductor Manufacturing International Corp. (SMIC), already under prior Entity List sanctions.
The broader implications highlight ongoing trade tensions as the U.S. and allies tighten control over chip technology exports. While China continues efforts to achieve semiconductor self-sufficiency, its reliance on foreign equipment and technology underscores vulnerabilities in its domestic chip supply chain. Analysts suggest that U.S. allies adopting similar controls could mitigate compliance challenges but deepen the divide between China and Western technology leaders.
This article was originally published on Quiver News, read the full story.
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