China’s chip ambitions are being tested again as fresh US sanctions, the third escalation in three years, hit more broadly across the semiconductor supply chain, industry insiders said.
Compared with previous sanctions, the US is targeting firms deeper in China’s semiconductor supply chain that provide essential support for replacing foreign technologies as part of China’s state-backed chip independence initiative.
“The market has already anticipated this, and because relevant companies have made preparations in advance, we believe the actual impact will be limited in the short term,” said Chinese state-backed investment bank Citic Securities in a note, adding that the new sanctions are expected to further accelerate the localisation of the entire supply chain.
Targeted companies include key players in the semiconductor supply chain, including equipment maker Naura Technology Group, cleaning tool maker AMC Research, metrology and inspection tool supplier Skyverse Technology, semiconductor design software developer Empyrean Technology, and photoresist materials supplier Nanda Optoelectronic Semiconductor Materials. These additions restrict their ability to import Western technologies and conduct business with companies using US-origin technology and software.
