The United States will launch a new round of chip restrictions on China's semiconductor industry, sources told Reuters, the third time in three years.
About 140 companies will be hit by export restrictions on Monday, including chip equipment makers, two sources said Northern Huachuang Technology Group.
Efforts to thwart Beijing's chipmaking ambitions will also target Chinese chip tool makers Piotek SiCarrier Technology imposed the new restrictions as part of a plan that also aims to ship advanced memory chips and more chipmaking tools to China.
See also: Nvidia holds talks with China even as new U.S. chip restrictions loom
The move marks one of the last large-scale actions by the Biden administration to block China's ability to obtain and produce chips that could help advance military applications of artificial intelligence or otherwise threaten U.S. national security.
Arriving in a few weeks Before Republican former President Donald Trump was sworn inHe is expected to retain many of Biden's tough measures against China.
The plan includes restrictions on the export of high-bandwidth memory (HBM) chips to China, which are critical for high-end applications such as artificial intelligence training; new restrictions on 24 additional chip manufacturing tools and three software tools; and restrictions on countries such as Singapore and Malaysia. New export restrictions imposed on manufactured wafer fabrication equipment.
Tool controls could harm Lam Research, KLA and Applied Materials as well as non-U.S. companies such as Dutch equipment manufacturer ASMI.
Chinese companies facing new restrictions include nearly two dozen semiconductor companies, two investment firms and more than 100 chipmaking tool makers, sources said.
U.S. lawmakers said some companies, including Swaysure Technology, Qingdao SiEn and Shenzhen Pensun Technology, collaborated with Chinese companies Huawei Technologies Co., Ltd.The telecommunications equipment leader, once hobbled by U.S. sanctions, has become a hub for advanced chip production and development in China.
They will be added to the Entity List, which prohibits U.S. suppliers from shipping to them without first obtaining special permission.
In recent years, China has stepped up efforts to become self-sufficient in its semiconductor industry as the United States and other countries restricted exports of advanced chips and their manufacturing tools. However, it is still years behind chip industry leaders such as Nvidia and Dutch chip equipment maker ASML in artificial intelligence chips.
The United States is also preparing to impose more restrictions SMICChina's largest contract chip manufacturer, the company was placed on the Entity List in 2020, but the policy allowed it to be issued a license to transport goods worth billions of dollars.
Expanding foreign direct product rules
For the first time, the United States has added two companies investing in chips to its entity list. Chinese private equity firms Wise Capital and technology companies Wingtech Technology Co., Ltd. will be added.
Companies seeking to ship to companies on the Entity List are often denied.
One aspect of the new package involving foreign direct products rules could harm the interests of some U.S. allies by limiting what their companies can ship to China. The new rules would expand U.S. power to restrict U.S., Japanese and Dutch manufacturers from exporting chip-making equipment made elsewhere in the world to certain Chinese chip factories.
Devices made in Malaysia, Singapore, Israel, Taiwan and South Korea are subject to the rule, while the Netherlands and Japan are exempt.
The expanded foreign direct product rules will apply to 16 companies on the Entity List that are seen as most important to China's state-of-the-art chipmaking ambitions.
The rule would also determine when the U.S. content of certain foreign items subject to U.S. control drops to zero. This would allow the U.S. to regulate anything shipped from overseas to China that contains U.S. chips.
The new rules come after lengthy discussions with Japan and the Netherlands, which together with the United States dominate the production of advanced wafer-making equipment.
The United States plans to exempt countries that have implemented similar controls, people familiar with the matter said.
Another rule in the plan limits the memory used in artificial intelligence chips corresponding to so-called “HBM 2” and higher, a technology made by South Korea's Samsung, SK Hynix and the US Micron.
Industry insiders only expect Samsung Electronics to be affected.
The latest rules are the third major measure implemented by the Biden administration targeting restrictions on Chinese chip-related exports.
October In 2022, the United States issued a comprehensive set of control measures Restricting the sale and manufacturing of certain high-end chips is considered the biggest shift in U.S. science and technology policy toward China since the 1990s.
- Reuters Additional editing by Jim Pollard
See also:
Huawei launches new Mate 70 smartphone, breaking away from American technology
China's Huawei and SMIC will “increase” production of latest artificial intelligence chips
Nvidia calls Huawei its biggest competitor in launching new artificial intelligence chips in China
Nvidia’s new artificial intelligence chips for China are priced close to Huawei alternatives
Analysts warn that the United States may sanction Chinese DRAM chip giants next
U.S. pressures South Korean chipmakers to further restrict Chinese chips
Threat of more chip restrictions sparks warning about Chinese innovation
Raimondo says Huawei’s China-made 7nm chips are “years behind the U.S.”
