US tightens China chip curbs, pulls Samsung and SK Hynix approvals

The United States has moved to tighten chip rules in China, cancelling approvals that had let Samsung and SK Hynix obtain ￰0￱ gear for their China operations, according to a notice in the Federal ￰1￱ 2022, the Commerce Department set broad export limits on ￰2￱ equipment but granted carve-outs for some ￰3￱ those carve-outs now withdrawn, the companies must apply for licenses before buying ￰4￱ for use in ￰5￱ filing also named Intel among those losing China authorization, though Intel completed the sale of its Dalian operation earlier this ￰6￱ a statement , Commerce said it plans to approve license requests that keep existing plants in China running, but it does not plan to issue licenses that expand capacity or move to more advanced ￰7￱ change is expected to trim Chinese demand for equipment from ￰8￱ KLA Corp, Lam Research and Applied ￰9￱ the day of the news, Lam fell 4%, Applied Materials slipped 2.8% and KLA was down 2.4%.

White House had warned of possible action The step follows signals in June, when Commerce said revocations were on the table. A White House official told Reuters that the United States was “just laying the groundwork” if the truce in trade talks with Beijing were to ￰10￱ now, both sides are in a tariff standstill, with duties of 30% on Chinese goods entering the United States and 10% Chinese tariffs on ￰11￱ in place until ￰12￱ trade dispute between the two largest economies has touched many areas, from rare earth supplies relied on by ￰13￱ to China’s purchases of ￰14￱ of applications by ￰15￱ to ship goods and technology to China have been stuck for months, building a large backlog that includes billions of dollars’ worth of semiconductor manufacturing ￰16￱ revocations become effective after 120 ￰17￱ chipmakers such as Samsung and SK Hynix now hold Validated End User status, which allows shipments without case-by-case ￰18￱ designation is set to be ￰19￱ decision could give an opening to Chinese equipment makers whose systems can step in when ￰20￱ are harder to ￰21￱ could also aid Micron, a major ￰22￱ to South Korea’s Samsung and SK Hynix in memory ￰23￱ claims tech independence amid ￰24￱ On the other hand, a senior executive at Huawei Technologies said China has virtually overcome crippling ￰25￱ curbs, as home-grown computing stacks, AI systems, and other software now match offerings from the United States.

Huawei, which Washington placed on its trade blacklist in May 2019, has already “built an ecosystem entirely independent of the United States”, said Tao Jingwen, president of the firm’s quality, business process, and information technology management department, speaking Wednesday in ￰26￱ pointed to resilience and recent milestones toward technology ￰27￱ an event in Guiyang, he said industry-wide self-reliance could allow China to “surpass the US in terms of artificial intelligence applications”, citing the country’s “extensive economy and business scenarios”. His remarks align with Huawei’s push across semiconductors, computing, cloud, AI, and operating systems despite tighter ￰28￱ and rising geopolitical ￰29￱ the same day, Huawei said users of token services on its cloud platform could access the CloudMatrix 384 ￰30￱ setup groups 384 Ascend AI chips across 12 computing cabinets and four bus cabinets, providing 300 petaflops of compute and 48 terabytes of high-bandwidth ￰31￱ petaflop equals 1,000 trillion calculations per ￰32￱ Bybit now and claim a $50 bonus in minutes