U.S. Expands Crackdown on China's Semiconductor Ambitions

The United States has imposed new export restrictions on China's semiconductor industry affecting 140 companies, as part of a broader strategy to curb Beijing's advances in AI and military technologies. The latest measures aim to thwart China's chipmaking capabilities, impacting global supply chains and international trade dynamics.

The United States announced a comprehensive package of restrictions aimed at China's semiconductor industry on Monday, marking its third crackdown in this sector in as many years. The latest measures target exports to 140 companies, including major players like Naura Technology Group and Piotech, alongside many others. The new curbs extend to shipments of advanced memory chips and additional chipmaking tools.

These restrictions are part of the Biden administration's final significant initiative to obstruct China's ability to produce chips that could be used for military applications. The package also places curbs on 24 additional chipmaking tools and software, further complicating China's efforts to modernize its military capabilities. Commerce Secretary Gina Raimondo stated that the goal is to prevent China from advancing its domestic semiconductor manufacturing system.

Chinese companies are facing escalating restrictions, with nearly two dozen semiconductor firms being added to the Entity List. This designation limits U.S. suppliers from shipping goods without a special license. Amidst these tensions, China's commerce ministry labeled the U.S. regulations as 'economic coercion' and promised measures to protect its companies' interests.

(With inputs from agencies.)