Washington is enacting export controls to prevent China's second-largest fab from moving forward with more advanced nodes.
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Some of the affected American manufacturers include Applied Materials, KLA, and Lam Research, which have no choice but to comply with Washington’s demands.
You may like U.S. lawmakers demand sales ban on chipmaking tools to China U.S. lawmakers aim to ban export of DUV chipmaking and etching tools to leading firms in China China's top chip execs claim ASML alternative 'small, fragmented, and weak' Although the U.S. already has an existing policy that prevents the shipment of advanced tools to China, this recent move risks adding tension ahead of President Donald Trump’s meeting with Chinese President Xi Jinping in May this year. In response to the recent ban, Chinese Foreign Ministry spokesperson Lin Jian said China is hoping that the U.S. would stabilize the global industrial and supply chains and keep trade functioning smoothly.
The Chinese companies will not receive the equipment they need to move forward with more advanced manufacturing processes from the U.S. companies, slowing down their progress. However, there’s also the possibility that they could source them from other non-American suppliers or find a workaround to the current export controls. On the other hand, the order to stop shipments also negatively impacts the U.S. firms, with some estimating that the three toolmakers could potentially lose out on billions of dollars in sales.
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Reference reading
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/us-stops-exports-of-chip-making-tools-to-chinas-number-two-chip-maker-hua-hong-and-huali-microelectronics-reportedly-on-the-cusp-of-starting-a-7-nm-fab-in-shanghai#main
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