What's Happening?
The US Bureau of Industry and Security has revoked waivers for certain foreign-owned chipmakers' factories in China, requiring them to obtain licenses to send US chipmaking equipment to their plants. This decision affects companies like Samsung, SK Hynix, and Intel Semiconductor (Dalian), and is part of the US's broader strategy to curb technology development in China. The move is expected to take effect on December 31, with the intention to grant export licenses for continued operations but not for capacity expansion or technology upgrades.
Why It's Important?
This development marks another escalation in the tech race between China and the US, as Washington expands its export-control regimes on semiconductors. The decision could lead to increased fragmentation in the chipmaking industry amid deglobalization trends. Chinese firms may seize the opportunity to develop more home-grown technologies, potentially reducing reliance on US technology. The ongoing technology war between the US and China could have significant implications for global supply chains and the semiconductor industry.
What's Next?
The US is expected to further tighten its policy to sustain dominance in certain tech areas, potentially ordering allies to ban technology exports to China. This could lead to more fragmentation in the chipmaking industry and increased efforts by Chinese firms to achieve self-reliance. The impact on global supply chains and the semiconductor industry will be closely watched, as companies navigate the challenges posed by geopolitical tensions and trade restrictions.
