Latest US Strike on Chinese Chips Hits Semiconductor Toolmakers

(Reuters) – The United States will launch its third crackdown in three years on China's semiconductor industry on Monday, limiting exports to 140 companies including chip equipment maker Naura Technology Group (002371.SZ ), among other measures, two people familiar with the matter said. .

Efforts to hamper Beijing's chipmaking ambitions will also hit Chinese chip tool makers Piotech (688072.SS) and SiCarrier Technology with new export restrictions under the package, which aims also shipments of advanced memory chips and more chip manufacturing tools to China.

The move is one of the latest large-scale efforts by the Biden administration to hamper China's ability to access and produce chips that can help advance artificial intelligence for military applications, or threaten security national of the United States.

It comes just weeks before the inauguration of former Republican President Donald Trump, who is expected to maintain many of Biden's tough measures toward China.

The package includes restrictions on shipments to China of high-bandwidth memory (HBM) chips, essential for high-end applications such as AI training; new restrictions on 24 additional chipmaking tools and three software tools; and new export restrictions on chipmaking equipment made in countries like Singapore and Malaysia.

Tool controls will likely hurt Lam Research (LRCX), KLA (KLAC), and Applied Materials (AMAT), as well as non-U.S. companies like Dutch equipment maker ASM International (ASML, ASM.AS).

Among the Chinese companies facing new restrictions are nearly two dozen semiconductor firms, two investment firms and more than 100 makers of chipmaking tools, the sources said.

U.S. lawmakers say some companies, including Swaysure Technology Co, Qingdao SiEn and Shenzhen Pensun Technology Co, are working with China's Huawei Technologies, the telecommunications equipment leader once hobbled by U.S. sanctions and now the focus of production and development of advanced chips in China.

They will be added to the Entity List, which prohibits U.S. suppliers from shipping products to them without first receiving a special license.

Asked about the U.S. restrictions, Chinese Foreign Ministry spokesperson Lin Jian said such behavior undermines the international economic and trade order and disrupts global supply chains.

China will take measures to safeguard the rights and interests of its enterprises, he added at a regular press briefing on Monday.

China's Commerce Ministry did not immediately respond to a request for comment.

China has stepped up efforts to become self-sufficient in the semiconductor sector in recent years, as the United States and other countries have restricted exports of advanced chips and the tools to make them. However, it remains years behind chip industry leaders like Nvidia (NVDA) in AI chips and chip equipment maker ASML in the Netherlands.

The story continues

The United States is also set to impose additional restrictions on Semiconductor Manufacturing International (0981.HK), China's largest contract chipmaker, which was placed on the Entity List in 2020, but with a policy that authorized billions of dollars in licenses to ship goods to it must be granted.

For the first time, the United States will add two companies that invest in chips to the entity list. Chinese private equity firm Wise Road Capital and technology firm Wingtech Technology Co will be added.

Companies seeking licenses to ship to companies on the Entity List are usually denied.

DUTCH AND JAPANESE EXEMPTED

One aspect of the new package that addresses the direct foreign goods rule could hurt some U.S. allies by limiting what their companies can ship to China.

The new rule will expand U.S. powers to restrict exports of chipmaking equipment by U.S., Japanese and Dutch manufacturers made in other parts of the world to certain chip factories in China.

Equipment manufactured in Israel, Malaysia, Singapore, South Korea and Taiwan is subject to this rule, while Japan and the Netherlands will be exempt.

The expanded foreign direct product rule will apply to 16 companies on the list of entities considered most important to China's more advanced chipmaking ambitions.

The rule will also reduce to zero the amount of U.S. content that determines when certain foreign products are subject to U.S. control. This will allow the United States to regulate any item shipped to China from abroad if it contains American chips.

The new rules are being released after lengthy discussions with Japan and the Netherlands, which, along with the United States, dominate the production of advanced chipmaking equipment.

The United States is considering exempting countries that adopt similar controls, the sources said.

Another rule in the package restricts memory used in AI chips that fit so-called “HBM 2” and later, a technology made by South Korean companies Samsung and SK Hynix and U.S. company Micron .

Industry sources expect only Samsung Electronics (SSNLF, 005930.KS) to be affected. Analysts estimate that Samsung makes about 30% of its HBM chip sales in China.

The latest rules constitute the third major set of chip-related export restrictions to China enacted under the Biden administration.

In October 2022, the United States released a broad set of controls on the sale and manufacturing of certain high-end chips, seen as the biggest change in its technology policy toward China since the 1990s.

(Reporting by Karen Freifeld and David Shepardson; additional reporting by Brenda Goh and Antoni Slodkowski; editing by Sonali Paul and Clarence Fernandez)

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos