The introduction of some export controls related to semiconductors by the U.S. makes it difficult for China to promote the development of its chip industry.
The U.S. Department of Commerce recently issued rules to prevent China from buying or making chips and components critical to supercomputers. Under new U.S. regulations, companies need a license to export high-performance chips to China. Many experts believe that this move will make China’s chip industry suffer.
In addition, American companies will be heavily restricted from exporting machinery to Chinese companies producing chips of a certain level.
For example, companies will need permits to ship machines to Chinese chip foundries.
Semiconductor Manufacturing International Co. (SMIC) is China’s most advanced chip maker. However, SMIC and other Chinese foundries will need to have a Dutch kit on hand to make the sophisticated chips.
If export restrictions are imposed and Washington pressures other countries not to sell to Chinese companies, it could hamper the operations of Chinese chipmakers.
Abishur Prakash, the founder of a consulting firm, said that with the latest action of the U.S., the deep gap between the U.S. and China is now too far to go back.