China’s chip industry warns of supply bottlenecks after US sanctions

by time news
semiconductor

According to the US Department of Commerce, all semiconductors worldwide and all devices required for semiconductor production made in the US are affected by the export ban.

(Photo: Reuters)

Shanghai The Chinese semiconductor industry has warned of global supply bottlenecks as a result of the export restrictions imposed on China’s chip industry by the USA. “Such a unilateral measure will not only further affect global supply chains in the semiconductor industry, but more importantly create an atmosphere of uncertainty,” the China Semiconductor Industry Association (CSIA) said.

It is hoped that the US government will adjust the approach and return to the best practices of the World Semiconductor Council (WSC) and the Government and Authority Meeting on Semiconductor (GAMS). WSC and GAMS are two global trade forums, established in 1996 and 1999 respectively, where member regions discuss development and policy for the chip sector.

The US imposed export restrictions on the Chinese chip industry last week. Among other things, the new rules for export controls are intended to prevent China from accessing certain semiconductor chips that are produced worldwide with US equipment.

Accordingly, the chip suppliers KLA, Lam Research and Applied Materials are no longer allowed to supply systems to Chinese plants that manufacture advanced logic chips. According to experts, the steps taken by the US government could set the Chinese chip industry back by years.

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In the last few days, however, the US government has quickly granted some chip manufacturers new conditions in order to alleviate supply problems. The US chip supplier Applied Materials lowered its sales forecast on Wednesday due to export restrictions against China.

More: Biden plans complete chip supply chain in the USA

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