"US Adds Export Controls on Over 30 Chinese Semiconductor Companies Including Yangtze Memory"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The U.S. Department of Commerce is reportedly planning to add more than 30 Chinese companies, including semiconductor manufacturer Yangtze Memory Technologies Co. (YMTC), to the trade blacklist known as the 'Entity List' as early as this week, Bloomberg News reported.

On the 13th (local time), Bloomberg cited anonymous sources saying, "More than 30 Chinese companies, including YMTC, will be added to the Entity List," and reported, "These Chinese companies will be unable to purchase related parts or equipment from U.S. suppliers without a separate license from the Department of Commerce." Bloomberg noted that this move is expected to deepen tensions between the U.S. and China.

Earlier, the Biden administration announced export controls on advanced semiconductors, semiconductors for supercomputers (AI), and certain semiconductor equipment to China in October, designating 31 companies including YMTC on the 'Unverified List' as provisional export control targets. The Unverified List means that U.S. authorities cannot verify whether the products of these companies are used for military purposes within China. After being placed on this list, companies must prove within a 60-day verification period that their products do not threaten U.S. national security.

The Chinese government has shown cooperation with U.S. authorities to prevent companies like YMTC from being placed on the blacklist. YMTC, China's largest 3D NAND flash semiconductor manufacturer, produces memory chips used in smartphones and once negotiated NAND flash supply deals with Apple, but these were put on hold after YMTC was placed on the Unverified List.

The Chinese government strongly opposes this measure. On the 14th, when asked about Bloomberg's report during a regular briefing, Wang Wenbin, spokesperson for the Chinese Ministry of Foreign Affairs, called it "blatant economic coercion and harassment in the field of science and technology," emphasizing that "China will resolutely safeguard the legitimate rights and interests of Chinese companies and institutions."