Chinese chipmaker Yangtze Memory Technologies Corp (YMTC) has asked all of its U.S. employees working in core tech positions in China to leave. The reason given is the company is having trouble meeting new U.S. export control.

Yangtze Memory Technologies Corp (YMTC) is a Chinese state-owned semiconductor manufacturer. The firm is a subsidiary of Tsinghua Unigroup, which in turn is majority owned by Tsinghua Holdings, one of the country’s largest technology conglomerates.

People familiar with the matter told The Financial Times that several employees have already left the country, including U.S. citizens and green card holders. But it’s not clear how many have left.

A person knowing of the matter said that the move was “necessary for the company and the right move for employees’ personal risk as well.” 

Earlier this month, The U.S. Commerce Department announced that it imposed further export controls on China to slow its development of advanced supercomputers and semiconductors, and its ability to obtain advanced computing chips.

The U.S. said that it is doing these things because China can use chips, supercomputers, and semiconductors to build advanced military systems, including weapons of mass destruction (WMD), abuse human rights, and improve military decision-making, planning, and logistics.

The Commerce Department said that these new changes are part of ongoing work to protect U.S.’s national security and foreign policy interests.

China is spending a lot to spur its chip industries. However, until now it still can not make high-end semiconductors for smartphones and other devices.

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