With the new round of sanctions, the US will set China’s chip industry back at least 10 years
Stubborn US sanctions against the industry The Chinese chip made it impossible for SMIC, the country’s largest chipmaker, to access advanced equipment and the company could not go into mass production of 14nm and below lithography. While the US sanctions have already created many problems for the Chinese chip industry, the Govt Joe Biden It is seeking to impose new sanctions.
According to Toms HardoverAmerica plans to get the support of the Netherlands and Japan for new sanctions. After these sanctions are imposed, China’s chip industry will be set back at least 10 years.
The US government is seeking to restrict Chinese chipmakers’ access to equipment to manufacture processors based on 40nm lithography and below. If this restriction goes into effect and SMIC and other Chinese companies cannot import equipment, there will be many problems for the country’s chip industry. Of course, this same sanction can also have a negative effect on the chip manufacturing equipment companies and ultimately the entire chip industry will be affected.
The new sanctions are said to have wide-ranging effects on ASML, the world’s top manufacturer of lithographic scanners, will not be left behind, and will mostly affect American and Japanese companies.
The Dutch government imposed new sanctions against China last week; Due to these sanctions, ASML is not allowed to export Twinscan NXT:2000i, NXT:2050i and NXT:2100i scanners to China. These three are considered the most advanced ASML scanners. The current sanctions affect 17 American scanners, and with the new sanctions, the number of these scanners will double. As the export of these scanners to China is limited, we will see a decrease in the income of the American companies Applied Materials, KLA and Lam Research.