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Semiconductors from China may be subject to US sanctions

The United States is considering limiting the supply of US chip manufacturing equipment to Chinese companies. This is reported Reuters citing four anonymous informed sources.

The US, through export controls, will try to limit Chinese production of memory chips without specialized military applications. The restrictions include a ban on the supply of American chip manufacturing equipment to factories in China that produce advanced NAND chips.

If President Joe Biden’s administration takes this step, it could also hurt South Korean memory chip makers Samsung Electronics Co Ltd and SK Hynix Inc. Samsung has two major factories in China, and SK Hynix Inc is buying Intel Corp’s (INTC.O) NAND flash chip business in China.

Read also: Russia should not have access to semiconductors for the production of weapons.

The Biden administration is considering this issue at an early stage – regulations have not yet been developed.

Asked for comment on a possible move, the Department of Commerce export control official did not elaborate on the potential restrictions, but noted that “The Biden administration is focused on disrupting (China’s) cutting-edge semiconductor manufacturing efforts to address significant national security risks to the United States.”

Read also: Confrontation between the USA and China: semi-cold semi-war of semiconductors

Recall The US Congress passed a law according to which the government of the country will allocate $ 280 billion for the production of microchips and create new jobs in the relevant industry. It is expected that this will help the United States get rid of dependence on China, which in recent years has become a leader in the production of semiconductors.

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