The Biden administration has unveiled its third wave of semiconductor export restrictions targeting China’s rapidly advancing technology sector.
These new measures aim to curtail China’s progress in artificial intelligence (AI) and military technology by restricting access to critical chipmaking equipment and advanced memory chips.
Over 140 companies, including Naura Technology Group, are expected to be impacted by these tightened regulations.
Focus on Chinese Chipmakers
This latest move places significant pressure on Chinese semiconductor companies like Piotech and SiCarrier Technology, which face stricter export limits.
Reports indicate that shipments of advanced memory chips and at least 24 chipmaking tools could be completely barred from reaching China.
This ban further isolates Chinese manufacturers from global suppliers, restricting their ability to procure cutting-edge technology.
The restrictions aren’t limited to China alone. Equipment makers from semiconductor hubs like Israel, Malaysia, Singapore, South Korea, and Taiwan could also be affected, signaling a broad international impact.
Expanding the Entity List
Additionally, over 100 Chinese chip equipment firms and two investment firms, Wise Road Capital and Wingtech Technology, are likely to be added to the US Department of Commerce’s entity list.
This designation blocks companies from doing business with US suppliers unless they acquire special licenses, which are seldom granted.
These sweeping measures build on a foundation of earlier restrictions. Semiconductor Manufacturing International Corporation (SMIC), which has been under restrictions since 2020, is expected to face even tighter curbs, exacerbating challenges for China’s largest chip producer.
High-Bandwidth Memory Chips in the Crosshairs
Critical to AI training and advanced computing, high-bandwidth memory chips are among the targeted items under the new sanctions.
By limiting exports of these components, the US hopes to slow China’s AI advancements, a field vital to both civilian innovation and military operations.
The Biden administration’s actions reflect an ongoing strategy to maintain US dominance in semiconductor technology and counter China’s efforts to achieve self-sufficiency.
China Accelerates Domestic Production
In response, China has intensified its drive toward semiconductor self-reliance. Chinese companies are investing heavily in domestic production to minimize reliance on foreign suppliers.
Despite these efforts, the US sanctions pose a formidable challenge, potentially delaying China’s aspirations for technological independence.
Chinese Foreign Ministry spokesman Lin Jian criticized the US measures, labeling them as harmful to global trade. He also hinted at potential countermeasures designed to protect domestic industries from the fallout.
A Bipartisan Strategy
The Biden administration’s sanctions echo policies first introduced during the Trump presidency.
While a change in leadership is imminent, with Trump poised to take office soon, many analysts believe the bipartisan consensus on restricting China’s tech ambitions will keep these measures in place.
Since October 2022, the US has introduced wide-ranging semiconductor export controls, and this latest round reinforces the administration’s commitment to maintaining technological supremacy while curbing China’s global influence.
