Key Points
- The U.S. imposes export restrictions on 140 Chinese firms, including Naura Technology and Piotech, to curb Beijing’s chipmaking capabilities.
- Advanced memory chips, HBM technology, and chipmaking tools are among the targeted export controls.
- Equipment from the U.S., South Korea, and Taiwan are affected, but Japan and the Netherlands are exempt from the new rules.
- The rules extend U.S. control to overseas shipments containing U.S. chip technology.
The United States is set to implement its third major crackdown on China’s semiconductor industry within three years. Beginning Monday, the Biden administration will impose import restrictions on 140 Chinese companies, including prominent chip equipment makers such as Naura Technology Group, Piotech, and SiCarrier Technology. These measures aim to hinder Beijing’s chipmaking and artificial intelligence advancements, particularly for military applications, which are perceived as potential threats to U.S. national security.
The new restrictions will target shipments of advanced memory chips, high bandwidth memory (HBM) technology, and critical chipmaking tools. Affected U.S. companies include Lam Research, KLA, and Applied Materials, alongside non-U.S. firms like Dutch equipment manufacturer ASM International.
Chinese companies such as Swaysure Technology, Qingdao SiEn, and Shenzhen Pensun Technology, reportedly linked to Huawei Technologies, will be added to the Entity List. This designation requires U.S. suppliers to obtain special licenses, often denied, to conduct business with these firms.
The U.S. package will also introduce export controls on chipmaking equipment manufactured in Israel, Malaysia, Singapore, South Korea, and Taiwan while exempting products made in Japan and the Netherlands. Expanding the Foreign Direct Product Rule strengthens the U.S. authority to regulate items shipped to China that incorporate U.S. chip technology.
Additionally, the administration plans to tighten controls on memory chips used in AI applications, such as HBM2 and higher. This will affect companies like South Korea’s Samsung Electronics, which generates significant HBM chip sales from China. These measures reflect ongoing bipartisan efforts to counter China’s growing influence in advanced technologies. Republican Donald Trump’s upcoming swearing-in is expected to continue these stringent policies.
China’s foreign ministry criticized the U.S. move, accusing it of undermining international trade and disrupting global supply chains. Beijing has intensified efforts to achieve self-sufficiency in semiconductors but remains technologically behind industry leaders such as Nvidia and ASML. The latest restrictions follow earlier U.S. actions, including the 2020 Semiconductor Manufacturing International Corporation (SMIC) designation to the Entity List and the sweeping October 2022 export controls targeting high-end chips.
