The Biden administration is considering further curbs on Chinese sales of semiconductor equipment and AI memory chips that would strengthen the U.S. crackdown on China’s technology ambitions, but would fall short of some of the more stringent measures previously considered, according to people familiar with the matter. do.
The restrictions could be released as early as next week, the people said, emphasizing that the timing and outlines of the regulations have changed several times and nothing is final until they are released. The move follows months of deliberations by U.S. officials, negotiations with allies Japan and the Netherlands, and intense lobbying by U.S. chip equipment manufacturers who have warned that tougher measures would cause catastrophic damage to their businesses.
The latest proposal has key differences from previous drafts, the people said. The first is which Chinese companies the United States will add to its trade restrictions list. The United States had previously considered sanctioning six suppliers to Huawei Technologies Co., the telecommunications giant at the center of China’s technology industry, and officials were aware of at least six more, the people said. But now they plan to add only some of Huawei’s suppliers to the entity list. notable ChangXin Memory Technologies Inc., which is developing AI memory chip technology, was also excluded.
A spokesperson for the Commerce Department’s Bureau of Industry and Security declined to comment. A National Security Council spokesperson referred Bloomberg News to BIS.
Japanese chip stocks soared. Tokyo Electron Ltd. rose as much as 10%, minimizing early trading losses. Kokusai Electric Corp. surged 23% and Screen Holdings Co. rose about 10%.
Rules currently under consideration would also sanction two chip factories owned by Huawei’s chipmaking partner, Semiconductor Manufacturing International Corp., the people said. The more than 100 additional listed companies will focus on Chinese companies that make semiconductor manufacturing equipment rather than manufacturing facilities that make the chips themselves, the people said. mad It was previously reported that the United States could announce new export control regulations as early as next Monday.
This comes after Lam Research Corp., a U.S. chip equipment maker that has argued for months about unilateral U.S. restrictions on major Chinese companies, including six Huawei suppliers, Applied Materials Inc.; It’s a partial victory for KLA Corp. They have argued that such sanctions would place them at an unfair disadvantage compared to foreign rivals Tokyo Electron and Dutch equipment giant ASML Holding NV. ASML Holding NV has yet to agree to the government’s strictest restrictions on sales to China. Japan and the Netherlands have imposed some restrictions on China from 2022 to partially match U.S. measures, but both countries have resisted recent U.S. pressure for tighter controls.
This summer, U.S. officials attempted hard-line negotiating tactics with allies. Warns that the United States may directly suppress The sale of foreign companies to China is a measure that Japan and the Netherlands have viewed as harsh excesses. The United States hoped that by threatening to use the so-called Foreign Direct Products Rule (FDPR), allies would be able to impose their own restrictions. However, Japan and The Hague have shown little interest in joining forces with the Biden administration ahead of President-elect Donald Trump’s return to power.
New U.S. rules that also restrict some additional tool categories still Exemption from allies such as Japan and the Netherlands Under the FDPR provisions, people familiar with the matter said. It is unclear whether Japan or the Netherlands will eventually impose additional restrictions on Chinese companies that the United States currently plans to sanction.
The latest version of the U.S. controls also includes some provisions for high-bandwidth memory chips, which handle data storage and are essential for artificial intelligence. Samsung Electronics, SK Hynix, and American memory manufacturer Micron Technology Inc. are also expected to be affected by this measure.
