Economic Affairs

The fallout from US chip curbs on China

The semiconductor industry will be reshaped to China’s detriment, but it still has options.

Washington’s export controls will not only hurt China, but also companies from the US and other countries. PHOTO: REUTERS
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On Oct 7, the United States government tightened technology restrictions on China, this time targeting the weakest link in China’s tech sector: the high-end of the semiconductor industry.

Under sweeping export controls, Chinese chipmakers will not be able to obtain advanced logic or memory semiconductors or the tools to make them, from not only US companies but from companies anywhere in the world that use US equipment – which means pretty much every supplier – unless they get a licence from the US government.

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