New US ban on technology and chip development has paralysed China’s semiconductor industry



The media reported that the US authorities' new ban on US chips and technology has paralysed the semiconductor industry in mainland China. Literally the media stated that "US technology, component and chip manufacturing service providers have left overnight, terminating all of their services in China.

New US ban on technology and chip development has paralysed China’s semiconductor industry

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The restriction applies not only to US companies, but to any other firms using US technology. Many US engineers and highly skilled professionals working in chip manufacturing in China have had to choose between being fired or losing their citizenship. As a result, American managers and engineers working in semiconductor manufacturing in China at many advanced factories, plants and research labs (AMAT, Yangtze, HLMC, ICRD, CXMT DRAM, Hedgehog Lab and many others) began resigning en masse from Friday to Saturday, paralysing an entire industry in the country.

Experts explained that in the long term this means that all microelectronics-dependent industries could suffer, such as the country's slowdown in the production of smartphones and unmanned cars by Chinese companies. They believe that the actions of the US authorities have caused serious damage to the Chinese technology industry, which is much stronger and more effective than the earlier sanctions imposed on individual Chinese companies.

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On 7 October, the US imposed sanctions that restricted the supply of semiconductors and chip-making equipment to 28 Chinese companies. The measures are aimed at restricting China's access to key technologies needed in a wide range of economic sectors.

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