Citic Sec's research report indicates that on December 2, 2024, the usa Department of Commerce updated the semiconductor export control policy and entity list, primarily targeting semiconductor enterprises in mainland china. This round of sanctions continues to focus on the 'high walls around small courtyards' strategy regarding advanced processes, aiming to hinder the development of advanced semiconductors in china. The content is not very different from previous media reports, and the market has already anticipated this. Due to the prior preparations by the related enterprises, Citic Sec believes the actual impact in the short term is limited, but in the long run, it will be necessary to abandon illusions, strive for self-reliance, and it is hopeful to further accelerate the domestic production process of the entire industry chain.