Washington’s latest move marks another development in the ever-intensifying tech race between the rival superpowers
China’s drive for economic self-reliance is raising the spirits and prospects of its semiconductor industry, as insiders expect more home-grown technologies after Washington revoked waivers for some foreign-owned chipmakers’ factories in China to use US technologies in their operations.
The Chinese branches of South Korean chipmakers Samsung and SK Hynix, as well as Intel Semiconductor (Dalian), will lose their fast-track status for compliance as “validated end-users”, meaning they will need to obtain licences to send certain US chipmaking equipment to their plants in China, according to a statement released on Friday by the US Bureau of Industry and Security (BIS) under the commerce department.
The decision is due to take effect on December 31 – 120 days after its official publication on Tuesday. While the BIS intends to grant export-licence applications to allow these companies to continue operating their facilities in China, it does not intend to grant licences to expand capacity or upgrade technology, the statement said.
“The Trump administration is committed to closing export-control loopholes – particularly those that put US companies at a competitive disadvantage,” Jeffrey Kessler, the US undersecretary of commerce for industry and security, was quoted as saying in the release.
