On Monday local time in the usa, the Biden administration, with less than two months left in its term, released new measures for semiconductor export controls against china. In addition to adding 136 chinese entities to the so-called "entity list" and increasing restrictions on exports of 24 types of semiconductor manufacturing equipment, 3 types of software tools, and HBM chips, it also brazenly interfered with china's normal trade with third-party countries.

This also marks the third large-scale and unreasonable suppression of China's semiconductor industry by the Biden administration since October 2022 and October 2023.

What aspects are affected?

According to a document released by the usa Department of Commerce's Bureau of Industry and Security (BIS) on Monday, 136 chinese entities were added to the so-called "entity list", covering chinese semiconductor manufacturing equipment manufacturers, wafer fabs, and investment institutions. The list includes a range of well-known listed companies such as naura technology group, Piotech, wingtech technology, and Beijing Huada Jiutian Technology.

The US Department of Commerce also specifically highlighted several important partners of Huawei in the list, including Changguang Jizhi Optics, Pengxinxu, Xinkailai, Shengweixu, and Qingdao Integrated Circuit Co., Ltd.

In the document on Monday, the US Department of Commerce introduced a new "long-arm jurisdiction" measure—FDPR (Foreign Direct Product Rule), which unreasonably restricts companies in third countries from providing products to certain companies on the "entity list," as long as the products contain any chip designed or manufactured using US technology.

It is worth mentioning that more than 30 countries including the Netherlands, japan, Italy, and France have received exemptions from the US Department of Commerce and are not affected by the new regulations released on Monday.

The USA Department of Commerce also added restrictions on 24 types of semiconductor manufacturing equipment in a document on Monday, covering certain etching, deposition, lithography, ion implantation, annealing, measurement, inspection, and cleaning tools. At the same time, restrictions were added to technologies such as electronic computer-aided design (ECAD) and technology computer-aided design (TCAD) software, and explanations were provided for the rules governing existing software key controls.

Finally, the Biden administration added new rules on the export of advanced high-bandwidth memory (HBM) to China, affecting American companies and foreign manufacturers impacted by "long-arm jurisdiction" measures. Like ai chips, HBM chips also face an export performance condition—memory bandwidth density lower than 3.3GB/s/mm^2 can apply for a license. The industry's understanding is that some "HBM2" and more advanced HBM chips may be restricted.

At the same time, the document also shows that in some cases with "lower technology transfer risks," Western companies can still package HBM2 chips in china.

Response from the Ministry of Commerce and the Ministry of Foreign Affairs of china.

In response to the USA's misconduct, a spokesperson for the Ministry of Commerce stated on Monday evening: The Chinese side noticed that the USA announced semiconductor export control measures against china on December 2. This measure further tightens the export controls on semiconductor manufacturing equipment, storage chips, and other items to china, including an additional 136 Chinese entities to the export control entity list, and expands long-arm jurisdiction, interfering in trade between china and third countries, which is typical economic coercion and non-market practices. The USA uses one set of standards for itself while insisting on another for others, continuously broadening the concept of national security, abusing export control measures, and practicing unilateral bullying. The Chinese side resolutely opposes this.

The semiconductor industry is highly globalized, and the USA's abuse of control measures severely obstructs normal economic and trade exchanges between countries, seriously disrupting market rules and the international economic and trade order, and significantly threatening the stability of the global industry chain supply chain. The global semiconductor industry, including American companies, is being severely affected. The Chinese side will take necessary measures to firmly safeguard its legitimate rights and interests.

Earlier on Monday, Foreign Ministry spokesperson Lin Jian responded at a regular press conference, stating: We have repeatedly stated our position on this issue. The Chinese side consistently opposes the USA's broadening of the concept of national security, abusing export control measures to maliciously blockade and suppress china. This behavior seriously violates the rules of market economy and the principle of fair competition, disrupts the international economic and trade order, disturbs the stability of the global production and supply chain, and ultimately harms the interests of all countries.

He emphasized that the Chinese side will take resolute measures to firmly protect the legitimate rights and interests of Chinese enterprises.

Editor/rice