The US has launched its third major crackdown on China’s semiconductor industry in three years, affecting 140 companies, including chip equipment maker Naura Technology Group. The restrictions aim to curb exports of advanced chip equipment and software tools, as well as high-bandwidth memory used in AI chips.
New controls will be placed on semiconductor manufacturing equipment, including etch, deposition, lithography, and cleaning tools, which could impact companies like Lam Research, KLA Corp, and Applied Materials. Software tools for developing or producing advanced-node integrated circuits are also subject to new controls.
The restrictions restrict high-bandwidth memory used in AI chips, specifically “HBM 2” and higher technology made by Samsung and SK Hynix. Industry sources expect only Samsung Electronics to be affected, as it generates about 20% of its HBM chip sales from China.
The US Entity List now includes semiconductor fabrication plants, tool companies, and investment firms that support Beijing’s advanced chip goals, posing a risk to national security. Companies on the list face denial of licenses to ship to these firms.
A new rule will expand US powers to curb exports of chipmaking equipment by manufacturers made in other countries, such as Israel and Malaysia, if shipped to China. The rule also lowers the threshold for US content that determines when foreign items are subject to control.
Source: https://www.reuters.com/technology/us-targets-chinas-chip-industry-with-new-restrictions-2024-12-02