US Launches Third Crackdown on China's Semiconductor Industry, Targets AI Chips, Blacklists 140 Firms

Dec 2, 2024, 09:07 AM

The United States has announced a new round of export controls targeting China's semiconductor industry, marking the third crackdown in as many years. The restrictions include adding approximately 140 Chinese companies, such as chip equipment makers Naura Technology Group, Piotech, and SMIC, to the export blacklist. The new measures aim to curb China's access to advanced chipmaking tools, artificial intelligence (AI) chips, and high-bandwidth memory (HBM) chips essential for AI applications. Companies like Huawei and ByteDance will be affected by the restrictions, hindering their ability to develop cutting-edge AI technologies. The Biden administration's sweeping export controls are intended to hinder China's technological advancements, particularly those with potential military applications. The Chinese Foreign Ministry criticized the actions, stating they violate market principles and fair competition, and pledged to take measures to protect the legal rights of Chinese companies. The export controls will affect equipment made in countries like Malaysia, Singapore, Israel, Taiwan, and South Korea, while those from the Netherlands and Japan will be exempt. The delay in implementing some of the measures gives Chinese companies a chance to stock up on restricted items.