The United States on Monday launched its third crackdown on China's semiconductor sector in three years, taking steps such as restricting exports to 140 companies including chipmaker NAURA Technology Group, among other measures.

New moves to stymie China's chipmaking ambitions could see Biotech, SiCarrier Technology and ACM Research impose new export restrictions as part of the latest package, which will also target shipments of advanced memory chips and other chipmaking equipment to China.

The move represents one of the latest broad efforts by the Biden administration to block China's access to or ability to produce chips that could help advance artificial intelligence for military applications or threaten U.S. national security.



This comes just weeks before President-elect Donald Trump returns to the White House, where he is expected to maintain many of Biden's tough measures against China.

US package of restrictions against China

The package includes restrictions on shipments to China of high-bandwidth memory chips, which are critical for advanced applications such as artificial intelligence training, new restrictions on 24 additional chipmaking tools and three software tools, and new restrictions on exports of chipmaking equipment made in countries such as Singapore and Malaysia.

Commerce Secretary Gina Raimondo said the move aims to prevent "China from developing a domestic semiconductor manufacturing system that it will use to support its military modernization."

The restrictions are likely to hurt Lam Research, KLA, Applied Materials, as well as non-U.S. companies such as Dutch chip equipment maker ASM International.



Among the Chinese companies facing new restrictions are more than 20 semiconductor companies, two investment firms and more than 100 chipmaking tool makers.

The companies that will be affected by the restrictions will be placed on a list of entities that the United States prohibits suppliers from doing business with or making shipments to without first obtaining special authorization.

Asked about the US restrictions, Chinese Foreign Ministry spokesman Lin Jian said such behavior harms international economic trade and trade order and disrupts global supply chains.

China will take all measures to protect the rights and interests of its companies, he added in a regular press briefing on Monday.

China has stepped up efforts to achieve self-sufficiency in the semiconductor sector in recent years, as the United States and other countries have restricted exports of advanced chips and the tools needed to make them.

However, it is still years behind leading chipmakers such as NVIDIA in the AI ​​chip sector and Dutch chip equipment maker ASML.

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