The United States plans to limit China’s access to US semiconductor technology, The New York Times reported. The new restrictions will hit China’s key technologies and have long-term consequences, experts say.
On October 10th, it became known that the Biden administration was mulling over new measures to ban Chinese companies from getting access to semiconductors. This could halt the development of the country’s large economic sectors.
The introduction of new regulations on semiconductor shipments to China would become the next stage of the longstanding confrontation between the two leading powers. The conflict could deliver a severe blow to the high-tech sector, analysts warned. The restrictions imposed by the US Commerce Department target China’s intelligence projects in the first place. Once new measures are introduced, the country’s factories will be able to purchase chips and chipmaking equipment only if they have a special license.
Reuters reported that some Chinese companies, including Megvii Technology, Dahua Technology, and iFLYTEK, would lose access to US semiconductor technology elsewhere. On top of that, the US Department of Commerce's Bureau of Industry and Security will impose additional export control measures on advanced computing and semiconductors for 28 Chinese companies.
Bloomberg was the first to report on the prospect of new punitive measures against China, targeting high-tech memory chip technologies, quantum computers, and key microcircuit components.
