USA Tighten Regulations for Chinese Semiconductor Industry

The United States has intensified its measures to curb the Chinese semiconductor industry by introducing export restrictions on 140 companies, including the Chinese chip manufacturer Naura Technology Group. These latest regulations mark the third major blow within three years. The planned regulations particularly concern the manufacturing of equipment required for the production of advanced integrated circuits. This could affect companies like Lam Research, KLA Corporation, and Applied Materials, as well as international players such as the Dutch equipment manufacturer ASM International. As part of the new measures, software tools used for the development or production of advanced circuits are also being more strictly controlled. This regulation could affect companies like Siemens, the parent company of Mentor Graphics. Another set of rules involves high-speed memory for AI chips, known as "HBM 2" and higher. Industry insiders expect that particularly Samsung Electronics might be affected by the restrictions, as an estimated 30% of the company's HBM chip sales originate from China. The new list of companies deemed to pose a potential security risk to the USA now also includes the Chinese investment company Wise Road Capital and the technology firm Wingtech Technology. Companies on the so-called Entity List find it difficult to obtain licenses for supplies from the USA. Additionally, the regulation concerning foreign direct products has been expanded. It gives the USA more control over the export of chip manufacturing equipment produced outside the USA by companies from Japan, the Netherlands, and other countries. The regulation could also increase US control over products with American chips exported to China.