Early this month, the U.S. put new limits on the sales of semiconductors to China. The latest round of bans makes it illegal for U.S. citizens and permanent residents to work in semiconductor companies in China. 

Since then, many chip talents have fled Chinese chip manufacturers.

U.S. chip giant Lam Research has started pulling its American workers from Chinese chip makers, like Yangtze Memory Technologies Corp, or YMTC. The company even asked them to stay away from Chinese wafer makers, at least for the time being. 

According to two employees familiar with the matter, Lam Research had stopped pre-sale negotiations with Chinese customers and stopped the plan to build a new factory in China.

According to The Financial Times, Chinese chipmaker Yangtze Memory Technologies Corp has told key American tech workers to leave as the company struggles to follow new U.S. export controls.

A senior engineer at YMTC said that some of the Americans were very important to the company’s progress in making Nand memory chips, but there’s no way to stop the talented staff from leaving. 

According to The Wall Street Journal, 43 high-level American executives working in 16 Chinese-listed semiconductor businesses face a hard choice due to the latest sanction. Either continue working in China or forfeit their US citizenship. 

Besides the talent drain, the ban also harshly affected sales and services to China of leading U.S. chip equipment suppliers like Lam Research, Applied Materials and KLA Corporation. 
ASML, a Netherlands-based chip producer, has told its U.S. employees to stop working with any Chinese customers while it assesses the sanctions.

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