[News] Latest U.S. Chip Curbs on China Targets 140 Companies, Led by Chip-tool Giant Naura Technology | TrendForce News

A new round of U.S. export crackdown on China has been disclosed, as it is set to implement its third wave of restrictions on China’s semiconductor industry in three years, starting Monday, as per a report from Reuters.

Maybe one of Biden’s largest scale restrictions, the new rules will include export bans targeting 140 companies, such as China’s chip equipment maker Naura Technology Group, according to the report.

The initiative to curb Beijing’s chipmaking ambitions will reportedly extend to other Chinese semiconductor toolmakers, including Piotech and SiCarrier Technology, targeting shipments of advanced memory chips and additional chipmaking equipment to China.

HBM2 and More Advanced Products Restricted

Moreover, the measures include restrictions on shipments of high-bandwidth memory (HBM) chips to China, which is essential for advanced applications such as AI training. To be more specific, the latest round of rules will limit memory used in AI chips that correspond to “HBM 2” and more advanced versions, according to Reuters.

While U.S.-based Micron and South Korean memory giants Samsung and SK hynix all produce HBM products, the report indicates that Samsung will be impacted the most.

As per a previous report from Reuters in August, Chinese tech giants Huawei and Baidu were stockpiling HBM in preparation for potential U.S. export restrictions. China accounted for roughly 30% of Samsung’s HBM chip revenue in the first half of 2024, Reuters adds.

According to sources cited by Reuters, China’s chip demand has primarily focused on HBM2e, which is two generations behind the most advanced HBM3e.

Chipmaking Tools Produced in Taiwan and South Korea Will be Restricted

According to Reuters, the Biden administration also imposes new controls on 24 additional chipmaking tools, three software tools, and chipmaking equipment produced in countries like Malaysia, Singapore, Israel, Taiwan, and South Korea. Those produced in the Netherlands and Japan, on the other hand, will be exempt, the report adds.

As the rules will extend U.S. authority to limit exports of chipmaking equipment produced by U.S., Japanese, and Dutch manufacturers, they are expected to impact U.S. companies such as Lam Research, KLA, and Applied Materials, as well as non-U.S. firms like Dutch giant ASML, as per Reuters.

In terms of the overall impact, sources cited by the report said that the new restrictions will target nearly two dozen Chinese semiconductor firms, two investment companies, and over 100 chipmaking tool manufacturers.

U.S. lawmakers cited by the report asserted that some of these companies, including Swaysure Technology Co, Qingdao SiEn, and Shenzhen Pensun Technology Co, collaborate with Huawei. They will reportedly be placed on the entity list, which prohibits U.S. suppliers from shipping to them unless they obtain a special license first.

New Restrictions on SMIC May Be on the Way

On the other hand, the U.S. is set to impose further restrictions on China’s foundry giant SMIC, the report suggests. Although SMIC was added to the Entity List in 2020, a policy still allowed billions of dollars in licenses to continue shipments to the company, according to Reuters.

For the first time, the U.S. will also include two chip investment companies on the Entity List, Chinese private equity firm Wise Road Capital and technology company Wingtech Technology, the report adds.

(Photo credit: Naura Technology)

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