China’s access to advanced semiconductor technology and equipment is set to be further restricted next month.
According to Reuters(Opens in a new window), the Biden administration is planning a new round of restrictions on chips and chip manufacturing equipment. The Commerce Department will publish new rules in October, according to people familiar with the matter.
The new sanctions specifically affect three US companies: Applied Materials Inc., KLA Corp. and Lam Research Corp. Applied Materials provides equipment, services and software for semiconductor manufacturing. KLA provides process control and production management systems to the semiconductor industry, and Lam Research provides wafer manufacturing equipment and services to create semiconductor active components.
Once implemented, the rule is expected to stop shipments of chip manufacturing equipment to Chinese factories capable of manufacturing parts below 14 nm. The only way around these restrictions is to first get permission from the Department of Commerce. The three companies mentioned above received “informed” letters earlier this year, which allows new restrictions to come quickly.
In July, it became clear that the United States wanted to further restrict access to Chinese chip manufacturing equipment. And China already faces the challenge of cutting off its access to advanced semiconductor technology. Last week, the US told AMD and Nvidia to stop selling advanced chips to China. The CHIPS Act quickly followed, preventing companies from building new factories in China for ten years. Earlier this year, the UK government stopped licensing China’s advanced vision sensor technology, showing the US isn’t just trying to limit access.
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