Tech war: US exempts at least two non-Chinese chip makers operating in China from export curbs, sources say
- The US government has allowed at least two non-Chinese chip makers operating in China to receive restricted goods and services without their suppliers seeking licences, sources say.
- Rules published on Friday require licences before US exports can be shipped to facilities with advanced chip production in China
The Biden administration had planned to spare foreign companies operating in China such as South Korean memory chip makers SK Hynix and Samsung Electronics from the brunt of new restrictions, but the rules published on Friday failed to exempt such firms, the sources said.
As published, the rules require licences before US exports can be shipped to facilities with advanced chip production in China, as part of a US bid to slow Beijing’s technological and military advances.
The US had planned to grant licences to supply non-Chinese chip factories on a case-by-case basis, while licences to Chinese chip makers will face a presumption of denial.
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As of midnight Tuesday, vendors also cannot support, service and send non-US supplies to such China-based factories without licences if US companies authorise, direct or request them.
But whether a licence is approved or not, the time it takes to get through the licence process could create delays in shipments and halt production.
A US Commerce Department spokesperson did not directly respond to a request for comment on the authorisations, but said the department hopes to get input from stakeholders about the rule and may consider changes.
A White House spokesperson also did not respond to a request for comment.
