US aims to hobble China's chip industry with sweeping new export rules
(VOVWORLD) - The Biden administration on Friday published a sweeping set of export controls, including a measure to cut China off from certain semiconductor chips made anywhere in the world with US equipment.
 FILE PHOTO - Hi1710 BMC management chip is seen on a Kunpeng 920 chipset designed by Huawei's Hisilicon subsidiary is on display at Huawei's headquarters in Shenzhen, Guangdong province, China May 29, 2019. Picture taken May 29, 2019. (REUTERS/Jason Lee) |
The rules, some of which go into effect immediately, build on restrictions sent in letters earlier this year to top toolmakers KLA Corp, Lam Research Corp, and Applied Materials Inc, effectively requiring them to halt shipments of equipment to wholly Chinese-owned factories producing advanced logic chips.
The raft of measures could amount to the biggest shift in US policy toward shipping technology to China since the 1990s.
If effective, they could hobble China's chip manufacturing industry by forcing American and foreign companies that use US technology to cut off support for some of China's leading factories and chip designers.