The United States is imposing new export restrictions on China’s semiconductor industry, barring U.S. shipments to 140 companies, which may affect China’s AI advancements. This includes chip equipment maker, Naura Technology Group. In reaction, China has banned U.S. exports of several “dual use” minerals and metals essential to military gear and semiconductors.
According to a Reuters report, the United States launched its third such major sweep on Chinese chipmaking since 2018.
The new plan imposes restrictions on Chinese chip toolmaking companies such as Piotech, ACM Research, and SiCarrier Technology. The package will limit China’s progress in developing AI-related technology by limiting the transfer of advanced memory chips and additional chip-making tools.
The latest effort can decelerate China’s access to technologies that would reinforce its military or compromise U.S. security. The restrictions are especially concerned with chips made to use in artificial intelligence. This also includes other advanced chipmaking equipment that use high bandwidth memory.
Commerce Secretary Gina Raimondo says that this restrictive action would limit China’s semiconductor capability and therefore its military modernization.
20 semiconductor companies, two investment companies, and over 100 AI chip makers are included in the list
U.S. companies including Lam Research, KLA, Applied Materials, and Dutch firm ASM International are likely to be impacted.
More than 20 semiconductor companies, two investment companies, and over 100 chipmaking toolmakers are included in the list.
One is Swaysure Technology, which is tied to Huawei and has already come under severe U.S. sanctions, and another is Shenzhen Pensun Technology.
U.S. suppliers also now need special licenses to do business with those firms added to the Entity List.
In a regular press briefing on Monday, Lin Jian, a spokesperson for the Chinese foreign ministry said these restrictions are against the norms of global trade. They will also disrupt the supply chains. He also added that China will protect the rights of its companies.
China has responded to US export restrictions
In a new update on Tuesday, December 3rd, China has barred U.S. exports of several “dual use” minerals and metals essential to military gear and semiconductors.
According to a recent report by Financial Times, the Chinese commerce ministry said it will stop shipping gallium, germanium, antimony, and superhard materials products to the US. Moreover, it will also increase controls on graphite products.
Also, Chinese industry groups in the internet, auto, semiconductor, and communications sectors have also asked their members to reduce buying U.S. semiconductors.
China Semiconductor Industry Association said it urged caution in buying “unsafe and unreliable” U.S. chip products. Banned minerals are essential in semiconductors, batteries, communication devices, and military hardware. China is the key to supplying these resources. This includes a total of 98% of the world’s gallium and 60% of germanium.
From Zero to Web3 Pro: Your 90-Day Career Launch Plan
