U.S. Bans Exports of Advanced Semiconductors to Communist China

The Biden administration is expected to announce severe restrictions on exports of advanced semiconductor products to communist China as early as the week ending on Oct. 8th. The measures are allegedly enacted after the use of export controls designed to hinder tech giant Huawei of communist China, which were designed to cut off China’s access to advanced U.S. semiconductor technology that would enhance artificial intelligence and supercomputers. The administration will build on the rules that had dealt a blow to Huawei by prohibiting global companies from shipping products made with U.S. technology to the Communist China. Following the news, concerns grew that South Korean semiconductor companies, including those that make high-performance memory chips, could be affected.

On Monday (local time), the New York Times quoted people familiar with the matter as saying that many companies, government research labs and other entities in communist China are expected to face restrictions, adding that any company using U.S.-made technology would be prohibited from selling to entities in communist China that the government targets. The news outlet also wrote that the new rules may be the most comprehensive action taken by the Biden administration to prevent the Chinese Communist Party from acquiring American technology.”

Key technologies that are restricted include technologies related to artificial intelligence and supercomputers, as well as high-end chip models called graphics processors used in data centers. Measures may be taken against a number of companies and research laboratories in the Communist China, including Changjiang Storage Technology Company (YMTC), a state-owned memory chip manufacturer.