The United States has launched its third crackdown in three years on China’s semiconductor industry, imposing export restrictions on 140 companies, including Naura Technology Group. This move is part of the Biden administration’s efforts to hinder Beijing’s chipmaking ambitions, particularly in advancing artificial intelligence for military applications. The package includes curbs on shipments of advanced memory chips and chipmaking tools to China, as well as new restrictions on chip toolmakers Piotech, ACM Research, and SiCarrier Technology.
Furthermore, the US is also targeting investments in chips by adding Wise Road Capital, Wingtech Technology Co., and JAC Capital to the entity list. The aim is to prevent China from acquiring entities with sensitive semiconductor manufacturing capability that could impact the defense industrial bases of the US and its allies.
This crackdown comes as China aims to become self-sufficient in the semiconductor sector, facing restrictions on exports of advanced chips and tools from other countries. China’s efforts, however, have not caught up with industry leaders like Nvidia and ASML, resulting in the US imposing additional restrictions on Semiconductor Manufacturing International Co.
Additionally, the US is expanding the foreign direct product rule to limit exports of chipmaking equipment by US, Japanese, and Dutch manufacturers to certain chip plants in China. The rule will subject equipment made in Israel, Malaysia, Singapore, South Korea, and Taiwan to restrictions while exempting Japan and the Netherlands. Despite concerns raised by US allies, such as the Dutch government and ASML, the US is moving forward with these measures to safeguard national security and control the export of sensitive technologies to China.
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