The U.S. government has reportedly decided to include equipment produced in countries like South Korea in its strengthened export restrictions on semiconductor manufacturing equipment to China. However, exceptions will be made for equipment from Japan and the Netherlands.
Reuters reported on the 2nd (local time) that the U.S. government is scheduled to announce new export restrictions for 140 Chinese companies. These companies include approximately 20 semiconductor firms and 100 equipment manufacturers, with SwaySure Technology being identified by U.S. lawmakers as a Huawei collaborator.
The restrictions also target Chinese private equity firm Wise Road Capital and technology company Wingtech Technology, requiring U.S. companies to obtain special permission from the U.S. government to export to these entities.
High bandwidth memory (HBM) chips, essential for AI training, are also part of the export ban, potentially impacting companies like Samsung Electronics, SK Hynix, and Micron.
The U.S. government has included 24 types of semiconductor manufacturing equipment and 3 types of software among the prohibited items. Although China aimed to establish a self-reliant system, it remains behind advanced technologies from the U.S. and the Netherlands.
Plans are underway to impose additional regulations on China’s largest foundry, SMIC. Though some exports to SMIC were allowed under the entity list, the sanctions have been intensified.
Under the Foreign Direct Product Rule (FDPR), even products from other countries can face export restrictions if they employ U.S.-origin software or equipment. The current measure includes equipment produced in countries other than Japan and the Netherlands, affecting Malaysia, Singapore, Taiwan, and South Korea. Reuters mentioned that exceptions are planned for countries with similar export control measures.
This export regulation is the Biden administration’s third major action aimed at curbing China’s semiconductor production capabilities, which could threaten U.S. national security. Even though Trump is slated to take office next year, the policy direction is expected to continue.