US restricting suppliers to China’s semiconductor industry

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The U.S. will launch its third crackdown in three years on China’s semiconductor industry on Monday, restricting exports to 140 companies.

Curbs on China-bound shipments of high bandwidth memory (HBM) chips, which are critical for high-end applications like AI training; new curbs on 24 additional chipmaking tools and three software tools; and new export restrictions on chipmaking equipment manufactured in countries including Singapore and Malaysia.

Among Chinese companies facing new restrictions are nearly two dozen semiconductor companies, two investment companies and over 100 chipmaking tool makers. The entity list will bar U.S. suppliers from shipping to them without first receiving a special license.

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https://www.tomshardware.com/tech-industry/us-to-reportedly-sanction-200-more-chinese-chip-firms-high-bandwidth-memory-might-also-see-export-bans

https://www.cnbc.com/2024/11/28/shares-of-chip-suppliers-jump-as-us-considers-toned-down-china-curbs.html

U.S. firms may lose revenue due to both the direct and indirect effects of the export controls. As a direct outcome of the export controls, U.S. firms are prohibited from selling specified products to targeted Chinese firms without a government-issued license. If denied a license, the U.S. firms must identify other buyers for their products or else their sales revenue will decline.

https://www.csis.org/analysis/collateral-damage-domestic-impact-us-semiconductor-export-controls

During the Korea-US Economic Security Conference in Washington DC on 10 September, US Under Secretary of Commerce for Industry and Security Alan Estevez urged chipmakers to only supply HBM to allies and for South Korea to back new US restrictions, the newspaper wrote.

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Estevez suggested China should be barred from importing advanced GPUs which power AI applications because they can be used for military purposes.

Bloomberg reported in early August the US was considering controls on the export of advanced AI memory chips to China including HBM2, HBM3 and HBM3E.

The US Department of Commerce last week introduced a draft of export controls covering quantum computing, advanced chipmaking equipment, gate all-around field-effect transistors and 3D printing.

https://www.mobileworldlive.com/ai-cloud/us-talks-up-need-for-hbm-chip-curbs-on-china/

h/t KeepIt