United States Protests China’s Semiconductor Chip Industry, Announces Export Restrictions
A total of 140 companies are being placed on the Entity List, in an effort to limit China’s effectiveness in the sector.
As reported by Reuters, the United States has decided to curtail the impact of China’s semiconductor sector by restricting exports to a total of 140 companies in the industry, including Naura Technology Group, a manufacturer of chip equipment.1
The list also included Shenzhen Pensun Technology, SiEn Qingdao, and Swaysure Technology Co—who happen to do business with Huawei Technologies, the telecommuniations equipment manufacturer that was on the tail end of US trade restrictions since December 2017, and placed on the “Entity List” by the commerce department in May 2019.2
The aforementioned businesses will also be added to the list, alongside over 100 companies that specialize in chipmaking tools, a couple of investment firms, and various semiconductor businesses, which would require them to receive US government approval if they’re looking to purchase and ship American tech.
Reuters also added the United States aims to put more restrictions on Semiconductor Manufacturing International, who is considered China's largest contract chip manufacturer. Many may recall that the company was added to the Entity List in 2020, but the company received approved of multiple licenses that allowed it to ship billions-of-dollars’ worth of products.
Pharma Commerce will continue to provide updates as this story unfolds.
References
1. Freifeld K, Shepardson D. Latest US strike on China's chips hits semiconductor toolmakers. Reuters. December 2, 2024. Accessed December 2, 2024. https://www.reuters.com/technology/latest-us-strike-chinas-chips-hits-semiconductor-toolmakers-2024-12-02/
2. Alper A, Shumaker L. US actions against China's Huawei. Reuters. Accessed December 2, 2024. https://www.reuters.com/graphics/USA-CHINA/HUAWEI-TIMELINE/zgvomxwlgvd/
