Asia

Latest US strike on China’s chips hits semiconductor toolmakers

The package includes curbs on China-bound shipments of high bandwidth memory chips, critical for high-end applications like AI training; new curbs on 24 additional chipmaking tools and three software tools; and new export curbs on chipmaking equipment made in countries such as Singapore and Malaysia.

Commerce Secretary Gina Raimondo said the action aims to prevent “China from advancing its domestic semiconductor manufacturing system, which it will use to support its military modernisation”.

Reuters first reported many companies involved and key details of the plan.

The tool controls will likely hurt Lam Research, KLA and Applied Materials, as well as non-US companies like Dutch equipment maker ASM International.

Chinese companies facing new restrictions include nearly two dozen semiconductor companies, two investment companies and over 100 chipmaking tool makers. The companies include Swaysure Technology, Si’En Qingdao, and Shenzhen Pensun Technology, which work with China’s Huawei Technologies. The telecommunications equipment leader has been hobbled by US sanctions and is now at the centre of China’s advanced chip production and development.

Source: CNA

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