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New Export Controls Imposed by U.S. on China’s Chip Industry


The United States recently launched its third crackdown in three years on China’s semiconductor industry, limiting exports to 140 companies, including chip equipment maker Naura Technology Group. This effort also impacts Chinese chip toolmakers Piotech, ACM Research, and SiCarrier Technology, as well as shipments of advanced memory chips and chipmaking tools to China. The Biden administration aims to hinder China’s chipmaking ambitions to prevent the advancement of AI technology for military applications. Chinese companies, including Huawei Technologies partners, will face new export restrictions, impacting the global supply chain. China has criticized these measures, describing them as economic coercion and non-market practices that disrupt global trade. Despite China’s efforts to become self-sufficient in the semiconductor sector, it remains behind industry leaders like Nvidia and ASML. The U.S. is also planning additional restrictions on Semiconductor Manufacturing International Co. and has added investment companies to the entity list to prevent the acquisition of sensitive semiconductor capabilities. The new rules will expand powers to regulate exports of chipmaking equipment, potentially affecting U.S. allies. ASML has stated that these restrictions may impact their business but are still under review by the Dutch government. These latest measures mark the third significant package of export controls on China under the Biden administration, signaling a continuation of efforts to curb China’s semiconductor industry growth.

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