US reportedly to unveil chip restrictions, impacting Samsung, SK hynix, and Micron

Rumors have been circulating that the Biden administration, USA, might announce new export restrictions targeting China around Thanksgiving. Now, more details have surfaced, as a report from Bloomberg indicates that additional restrictions on the sale of semiconductor equipment and AI memory chips to China could be released early, though the timing and specifics have shifted multiple times.

Notably, though the updated controls reportedly tend to avoid some of the harsher measures previously discussed, they are expected to include provisions addressing HBM, which are likely to affect South Korean memory giants Samsung and SK hynix, as well as U.S.-based memory producer Micron, according to Bloomberg.

Over 100 semiconductor manufacturing firms in China impacted
A previous report from Reuters suggested that these measures could potentially impact up to 200 Chinese chip companies. However, sources cited by Bloomberg note that according to the latest version, the scope may be narrowed.

Over 100 new entity listings are expected to target Chinese companies involved in producing semiconductor manufacturing equipment, rather than those operating chip fabrication facilities, they added.

The latest proposal includes significant changes compared to earlier drafts, according to sources cited by Bloomberg. One key difference lies in the selection of Chinese companies to be added to the restriction list. Initially, the U.S. considered sanctioning six suppliers to Chinese tech behemoth Huawei, along with at least six additional firms. However, the current plan reportedly involves adding only some of these Huawei suppliers to the entity list.

On the other hand, the report further notes that the proposed rules would also include sanctions on two chip factories owned by China’s foundry giant SMIC, a key chipmaking partner of Huawei.

Partial win for American chip equipment makers
According to Bloomberg, this development comes after months of internal debate among U.S. officials, consultations with allies in Japan and the Netherlands, and significant pressure from American chip equipment manufacturers, who have warned that stricter measures could severely damage their industry.

Therefore, the new policy is regarded as a partial victory for American chip equipment manufacturers such as Lam Research, Applied Materials and KLA, which have long opposed unilateral U.S. restrictions targeting key Chinese firms.

In response to the upcoming U.S. sanctions, China issued a warning, Thursday, stating it would take “necessary actions” to safeguard its companies if the U.S. intensifies chip control measures, according to Reuters.

He Yadong, spokesperson of China’s Ministry of Commerce (MOFCOM) expressed strong opposition to the U.S.’s actions, accusing it of expanding the definition of national security and “abusing” control measures against Chinese firms, Reuters notes.

-- Source: TrendForce, Taiwan.