New US export controls on semiconductor technology this week have been met immediately by retaliatory measures from China
This week has seen the US Department of Commerce’s Bureau of Industry and Security (BIS) ramp up controls on its tech exports to China, particularly those related to the manufacture of semiconductors.
The additional restrictions cover 24 types of semiconductor manufacturing equipment and three types of software tools for developing or producing semiconductors. It also includes High-Bandwidth Memory (HBM), a computer memory interface at the heart of AI chip technology.
In addition to these restrictions, the update added 140 companies to the US’s infamous Entity List, 136 of which were Chinese. US companies looking to sell restricted items to entities designated on this list are required to acquire a specialised export licence from BIS, which is seldom granted. Companies to the list in this most recent batch include semiconductor fabs, tool companies, and investment companies that the US claims have links to the Chinese government.
These new measures, BIS says, are designed to slow China’s ability to “indigenise the production of advanced technologies” that may pose a threat to US national security. In particular, this includes the creation of advanced-node integrated circuits, which are used for advanced AI and military applications.
“They’re the strongest controls ever enacted by the US to degrade the PRC’s ability to make the most advanced chips that they’re using in their military modernization,” said Secretary of Commerce Gina Raimondo.
China has responded quickly to the new sanctions, banning shipments to the US of several ‘dual-use’ metals used to make semiconductors and military applications. This includes export bans on gallium, germanium, antimony and superhard materials, with stricter rules also to be put in place for graphite products.
“The US preaches one thing while practicing another, excessively broadening the concept of national security, abusing export control measures, and engaging in unilateral bullying actions. China firmly opposes such actions,” said China’s Commerce Ministry in a statement.
These retaliatory sanctions are effective immediately.
This trade dispute represents the latest sparks in the ever-increasing geopolitical clash for technology dominance between the US and China. Both nations are currently supporting multibillion-dollar state subsidy programmes to bolster domestic semiconductor production, aiming to reduce their reliance on the global supply chain.
In other chip-related news, this week saw the shock retirement of Intel CEO Patrick Gelsinger.
Intel has been struggling to remain competitive in recent years against the likes of TSMC and AMD, despite substantial internal restructuring and the laying off of 15,000 staff. In its most recent quarterly report, the company reported losses of $1.6 billion.The US telecoms industry is changing rapidly. Join the heart of the discussion at Connected America 2025 live in Dallas, Texas! US-China trade war flares as both sides introduce new chip tech restrictions | Total Telecom
