Four Things to Know About How the U.S.’ Chip Controls Will Impact China

Washington’s broadened controls on exports of advanced semiconductor equipment could accelerate the China’s development of cutting-edge technologies, industry insiders say

The U.S.’ latest sweeping crackdown on China’s semiconductor industry will have a limited negative impact on Chinese companies, but potentially accelerate the country’s development of cutting-edge technologies, according to industry insiders and experts.

The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) last week announced a new round of sanctions aimed at further curbing China’s ability to produce advanced chips used in its military modernization.

The bureau added 136 more Chinese companies and four China-linked firms to its Entity List, a trade blacklist that will block them from accessing U.S. advanced chip and AI-related technology. The bureau also announced new export curbs on semiconductor equipment and high-bandwidth memory (HBM) — critical to both large-scale artificial intelligence (AI) training and inference and a key component of advanced integrated circuits (ICs).

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