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Chip war: China’s semiconductor supply chain faces tough test amid broader US sanctions
Chinese chip companies have localised much of their supply chain in recent years, experts say, potentially limiting the impact of Washington’s new rules
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Che Panin Beijing
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.
The US Commerce Department, which oversees export controls, added 140 Chinese chip-related organisations to a trade blacklist and placed additional restrictions on China’s access to semiconductor manufacturing tools in a major escalation by Washington to cripple China’s chip technology progress.
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.
At the same time, many Chinese companies are downplaying the potential impact of being placed on Washington’s so-called Entity List, saying their localisation efforts in recent years largely insulate them from the worst effects.
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