The Biden administration delivered its heaviest blows in the escalating U.S. fight over China’s semiconductor ambitions.

On October 7, the United States extended sanctions to the mainland’s chip industry. Companies and entities must obtain a license to partner with mainland companies and ship technical services and products. Affected sectors include supercomputing, artificial intelligence, and the military sector.

According to The Business Times, the newly announced restrictions also affect the ability to hire China’s top talent.

Immediately after the information was released, equipment manufacturers ASML, Lam Research, Applied Materials, and KLA Corporation decided to withdraw their American employees from mainland partners to comply with relevant regulations.

An executive at a chip design business told Caixin that many Chinese Americans with American citizenship hold critical technical positions at Chinese chip companies. Some key technical experts at ChangXin, (SMIC) may have to leave.

Jordan Schneider, an analyst at the research institute Rhodium Group, shared with more than a million followers on his personal Twitter that semiconductors in the mainland would be paralyzed and completely collapse in this situation.

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