The Biden administration plans to place Yangtze Memory Technologies and more than 30 other Chinese companies on one blacklist trade that would prevent them from buying certain US components, exacerbating tensions between the two world economic superpowers, the agency reveals Bloomberg.
The US Commerce Department will add China’s top memory maker and others to the Entity List starting this week, the source said. Bloomberg. Companies on the entity list are not permitted to purchase technology from US suppliers unless they obtain a special export license. This relentless policy of the United States has already made it possible to break the business of consumer smartphones from Huawei Technologies and put spokes in the wheels of the Chinese founder SMIC.
The Biden administration had already unveiled a set of restrictions on China’s ability to buy semiconductors and chip-making equipment in October, putting Yangtze Memory and other companies on a list for further investigation in the future. Bloomberg.
New rules were issued in October by the Commerce Department’s Bureau of Industry and Security (BIS) to block the production of advanced chips in China (see our Article). BIS implemented a series of targeted updates to its export controls to protect US national security and foreign policy interests. These updates will limit the People’s Republic of China’s ability to purchase and manufacture certain high-end chips used in military applications, the report said. press release from BIS.
Yangtze memory, based in Wuhan, is the country’s largest NAND flash memory manufacturer. The company was in negotiations to supply Apple, which
would have marked a milestone for China’s tech industry, but it has since been put on hold.
China is preparing its response by attacking the US before the WTO for the US export policy, which it considers discriminatory, and by preparing, according to Reutersa plan to prop up its $143 billion semiconductor industry (see our Article).
Read the Bloomberg article