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Title: US to Implement New Export Restrictions on China’s Semiconductor Industry
The United States is set to introduce its third major crackdown on China’s semiconductor industry, targeting 140 entities with new export restrictions. The measures aim to restrict China’s access to advanced chips and equipment vital for artificial intelligence and other high-tech applications. The restrictions include export bans on Chinese chip equipment firms and shipments of advanced memory chips, high-bandwidth memory (HBM) chips, and specialized chipmaking tools. Key suppliers such as Lam Research Corp, KLA Corporation, and Applied Materials Inc may be impacted by the measures.
The Biden administration is taking these steps before President-elect Donald Trump takes office, who is expected to maintain or expand these restrictions due to national security concerns related to AI-driven military advancements in China. China’s biggest chipmaker by volume, Semiconductor Manufacturing International Corp, will also face further restrictions. Additionally, the US Entity List will now include Chinese private equity firm Wise Road Capital and technology firm Wingtech Technology Co Ltd.
The new regulations also update the foreign direct product rule, extending U.S. export controls to chipmaking equipment manufactured outside the US. Japan and the Netherlands are exempt as their governments have implemented similar export restrictions. This marks the latest round of restrictions following sweeping measures imposed in October 2022.