The United States is moving to impose sanctions on China foundry (semiconductor contract manufacturing) corporations "Hua Hong Semiconductor," Reuters reported on the 28th (local time), citing multiple sources. The aim is to block exports of certain semiconductor manufacturing equipment to slow the No. 2 foundry corporations in China from making artificial intelligence (AI) chips.
According to the report, the U.S. Department of Commerce sent letters ordering several domestic semiconductor equipment makers to halt shipments of certain semiconductor equipment bound for Hua Hong. U.S.-based semiconductor equipment makers Lam Research, Applied Materials, and KLA are known to have received the letters. The Commerce Department letters include restrictions on exports of semiconductor equipment and other materials to two Hua Hong manufacturing facilities that it judged could produce the most sophisticated chips in China.
Huali Microelectronics, a foundry institutional sector affiliate of Hua Hong, is reportedly preparing a 7-nanometer semiconductor manufacturing process at its Shanghai plant. In China, the only corporations capable of producing 7-nanometer semiconductors had been SMIC, the largest chipmaker. Reuters said this is "the latest U.S. move to slow China's development of advanced chips," adding it is "an extension of policies aimed at preserving the United States' technological edge in AI and other advanced chip manufacturing."