The media reported that the administration of the President of the United States Joe Biden is currently considering additional restrictions on the sale of semiconductor equipment and artificial intelligence memory chips to China.
Journalists released the mentioned information, referring to insiders who are aware of Washington’s potential intentions. It is worth noting separately that the interlocutors of the media representatives said that the Joe Biden administration would abandon some of the more stringent restrictive measures that were initially considered in the context of decreasing the possibilities within the framework of shipments of chips to China.
If the decisions currently being discussed are imposed, the Asian country’s technology sector will face even more pressure from the United States. It is worth mentioning that the US explains its restrictive policy regarding the export of chips and equipment for the manufacturing of appropriate products to China for reasons of national security. In this context, it is noted that Beijing can use microcircuits to strengthen its military potential.
Insiders reported that new restrictions on shipments of semiconductor equipment and chips to China could be unveiled as early as next week. At the same time, they noted that the final version of the relevant measures has not yet been formed.
According to media reports, for several months US officials have been negotiating with allies in Japan and the Netherlands over new export restrictions against China. It is also worth noting that chip equipment manufacturers based in the United States have repeatedly stated that excessive tightening of the mentioned measures will cause catastrophic harm to their business.
The media, citing insiders, reported that Washington initially intended to add six Huawei suppliers to the list of companies subject to trade restrictions. Over time, this plan was changed. According to insiders, a smaller number of suppliers of Huawei, which has been one of the main targets of US sanctions for several years, will be added to the mentioned list.
The interlocutors of the journalists reported that the new export restrictions will affect two chip-making plants owned by Semiconductor Manufacturing International Corp. (SMIC). This company is Huawei’s partner in producing microcircuits.
For US chip gear makers such as Lam Research Corp., Applied Materials Inc., and KLA Corp., the measures being discussed in Washington to tighten export controls are a partial victory of sorts. These companies warned that excessive sanctions would generate a disadvantageous position for them compared to foreign competitors, including Japanese Tokyo Electron and Dutch ASML. Washington seems to have taken into account the relevant statements.
As we have reported earlier, German Government Plans New Chip Subsidies.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
