US Considers Action on Chip Plants in China
The United States is reportedly considering measures that would restrict leading global semiconductor companies from utilizing American technology in their Chinese chip plants.
Potential Waiver Cancellations
According to the Wall Street Journal, Jeffrey Kessler, a Commerce Department official, has communicated to firms like Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing (TSMC) about potential cancellations of waivers permitting the use of U.S. tech in China.
Market Impact
This news has already impacted the stock values of American chip equipment manufacturers, including KLA Corp, Lam Research, and Applied Materials.
Commerce Department Statement
A Commerce Department spokesperson clarified that chipmakers would still be able to operate in China, and that new enforcement mechanisms would mirror existing licensing requirements for semiconductor companies exporting to China, ensuring a reciprocal process.
Implications
However, this move is expected to complicate operations for foreign chipmakers in China, where they produce semiconductors crucial for numerous industries.
