World's Top Chip Equipment Suppliers Halt Business With China

Leading chip equipment suppliers have suspended sales and services to semiconductor manufacturers in China, as new US export controls disrupt the Chinese tech industry and global companies' operations. From a report: Lam Research, Applied Materials and KLA Corporation, US companies which hold dominant shares in certain segments of the semiconductor manufacturing process, have all taken immediate measures to comply with the new rules, according to several people with direct knowledge of the matter. ASML, the Netherlands-based global leader in chipmaking equipment, has told its US staff to stop serving all Chinese customers while it assesses the sanctions. The new restrictions, announced on Friday last week, ban the export to China of US semiconductor equipment that cannot be provided by any foreign competitor. They also impose a licence requirement for exports of US tools or components to China-based fabrication plants, or fabs, that make advanced chips, and for exports of items used to develop Chinese homegrown chip production equipment. They also require any US citizen or entity to seek permission from the Department of Commerce for providing support to Chinese fabs.

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