China’s new blow to the chip industry – USA aims to restrict exports to 140 companies
In the last few years, the technology war between the USA and China has had wide repercussions in the global economic and political arena.
With successive harsh measures from the Biden and Trump administrations, restrictions on China’s semiconductor industry have turned into an increasingly tense situation. While the United States aims to prevent China from producing advanced technology chips that can be used in artificial intelligence and military applications, Beijing is trying to defend its technological and economic independence by resisting these pressures.
This high-pressure struggle between two technology giant countries continues to determine the fate of not only these two countries, but also the global technology supply chain. This conflict is at the center of a strategic rivalry that will be described as the ‘Cold War’ of the modern age. In light of all this conflict, with the US announcing restrictions on China once again, the course of the technology industry around the world seems to be on the path to change once again.
THIRD RESTRICTION EDITION
The US is enacting its third major package of restrictions on China’s semiconductor industry. In this context, export restrictions are being imposed on 140 companies, including chip equipment manufacturer Naura Technology Group. According to the statements in Reuters, this move is being made to prevent Beijing’s chip production targets and leaves companies such as Chinese chip vehicle manufacturers Piotech and SiCarrier Technology facing new export restrictions.
IT WAS ACCEPTED BY THE BIDEN ADMINISTRATION
This newly enacted move is a package adopted by the administration of President Biden, who lost the election. It stands out as the Biden Administration’s latest large-scale effort to thwart China’s ability to access and produce chips that could help advance artificial intelligence for military applications or otherwise threaten U.S. national security.
However, the new Republican president, Trump, is expected to continue many of Biden’s tough measures against China.
The package, one of China’s last large-scale efforts to thwart the potential of developing artificial intelligence for military applications or threatening U.S. national security, also includes shipments of high-tech memory chips and chip manufacturing tools to China. The package restricts shipments of high-bandwidth memory (HBM) chips, which are critical for high-end applications such as AI training, and includes new restrictions on 24 additional chip manufacturing tools and three software tools.
New export restrictions on chip manufacturing equipment manufactured in countries such as Singapore and Malaysia could affect companies such as Lam Research, KLA and Applied Materials. Additionally, non-U.S. companies such as Dutch equipment manufacturer ASM International may also suffer from these restrictions.
SEMICONDUCTOR COMPANIES ARE TARGETED
Chinese companies facing new restrictions include nearly two dozen semiconductor companies, two investment firms and more than 100 chip production tool makers. US lawmakers state that companies such as Swaysure Technology Co, Qingdao SiEn and Shenzhen Pensun Technology Co are working with Huawei, which is blocked by US sanctions and is located in China’s advanced chip production and development center.
These new restrictions are likely to continue shaping developments in China’s semiconductor industry and the US-China technology war. These moves by the USA may change the balance in the global chip industry and further intensify the competition between the two countries.