U.S. Ban On Exports To Semiconductor Toolmakers Hits China

The United States will launch its third major crackdown in three years on China's semiconductor industry, restricting exports to 140 companies, including chip equipment maker Naura Technology Group, according to two people familiar with the matter. Karen Freifeld and David Shepardson reported this for Reuters.

This is one of the Biden administration's largest-scale efforts to stymie China's ability to access and produce chips that could advance artificial intelligence (AI) for military applications or threaten U.S. national security.

The effort to hinder Beijing's chipmaking ambitions will also impose new export restrictions on Chinese chip toolmakers Piotech and SiCarrier Technology.

The comprehensive package targets shipments of advanced memory chips and additional chipmaking tools to China.

This move marks one of the Biden administration's largest-scale efforts to stymie China's ability to access and produce chips that could advance artificial intelligence (AI) for military applications or threaten U.S. national security.

The package includes restrictions on China-bound shipments of high-bandwidth memory (HBM) chips, crucial for high-end applications like AI training, as well as curbs on 24 additional chipmaking tools, three software tools, and chipmaking equipment manufactured in countries such as Singapore and Malaysia.

The new tool controls are expected to hurt U.S. companies like Lam Research, KLA, and Applied Materials, along with non-U.S. firms such as Dutch equipment maker ASM International.

Among the Chinese entities facing restrictions are nearly two dozen semiconductor companies, two investment firms, and over 100 chipmaking toolmakers.

Some of these, including Swaysure Technology Co., Qingdao SiEn, and Shenzhen Pensun Technology Co., work with Huawei Technologies. Huawei, once hobbled by U.S. sanctions, is now central to China's advanced chip production and development efforts.