U.S. Tightens Grip on China's Chip Industry

The U.S. has launched major restrictions on China's semiconductor industry, affecting 140 companies. The crackdown targets semiconductor manufacturing equipment, software tools, and high bandwidth memory used in AI chips. Newly entered companies on the Entity List face export license denials, with tighter controls on chip sales and equipment exports.

The United States has intensified its efforts against China's semiconductor industry by introducing new restrictions on Monday. This move marks the third major crackdown in three years, impacting exports to 140 companies, including chip equipment maker Naura Technology Group. The measures, as announced by the Commerce Department, aim to hinder China's semiconductor advancements.

The restrictions introduce controls on semiconductor-manufacturing tools necessary for producing advanced-node integrated circuits. These restrictions could impact companies such as Lam Research, KLA Corp, and Applied Materials, including foreign companies like Dutch equipment maker ASM International. Moreover, the crackdown includes new controls on software tools used for developing or producing advanced-node integrated circuits, which could affect companies like Siemens, a parent company of Mentor Graphics.

Additionally, the new rules target high bandwidth memory (HBM) used in AI chips, particularly technology manufactured by South Korea's Samsung and SK Hynix, and U.S.-based Micron Technology. The entity list has been expanded to include 140 new companies, placing further restrictions on trade with companies such as Wise Road Capital and Wingtech Technology Co. Expanded rules will enhance U.S. powers to regulate chip exports, especially to companies seen as crucial for China's advanced chip ambitions.

(With inputs from agencies.)