Why U.S.’ Chip Curbs on China Could Backfire

Washington added more Chinese chip firms to its trade blacklist and tightened export controls on semiconductor equipment, but questions remain about how effective they will be, and their impact on the

The U.S. Department of Commerce on Monday announced the addition of nearly 140 Chinese chip companies to its Entity List, marking the third instance of large-scale semiconductor restrictions targeting China under the Biden administration. The targets of this round of sanctions are primarily semiconductor manufacturing equipment and high-bandwidth memory (HBM).

The export control list has been expanded to include 24 new types of semiconductor manufacturing equipment and three software tools. Additionally, the revised “Foreign Direct Product Rule” (FDPR) restricts chip companies in counties such as the U.S., Japan and the Netherlands from exporting advanced manufacturing equipment to China via third countries.

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