On December 3, 2024, the United States launched its third major crackdown on China’s semiconductor sector, imposing new restrictions on exports to 140 Chinese companies, including major chip equipment maker Naura Technology Group. The new measures target crucial semiconductor manufacturing tools, such as etching, lithography, and cleaning equipment, potentially affecting global suppliers like Lam Research, KLA Corp, and Applied Materials. Additionally, software controls will limit advanced-chip development tools, impacting firms like Siemens.
The U.S. has also restricted high-bandwidth memory (HBM) used in AI chips, primarily affecting Samsung Electronics, which generates a significant portion of its HBM sales in China. The U.S. added 140 entities to its Entity List, including semiconductor fabrication plants and investment firms believed to be advancing China’s chip ambitions in ways that threaten U.S. national security. The expanded “foreign direct product rule” will also apply to critical equipment made in countries like Israel and Taiwan, tightening U.S. control over global semiconductor supply chains.