The Biden administration is contemplating imposing sanctions on multiple Chinese tech companies, including memory chipmaker ChangXin Memory Technologies Inc., in an effort to curb China’s advancement in advanced semiconductor technology. This move comes amid escalating tensions between the United States and China over technological dominance.
According to sources familiar with the matter, the US Commerce Department’s Bureau of Industry and Security (BIS) is evaluating the inclusion of ChangXin Memory Technologies Inc. (ChangXin) on its Entity List. Being on this list would impose restrictions on the company’s access to US technology. Additionally, BIS is also considering imposing restrictions on five other Chinese firms. However, it’s important to note that the list of companies under consideration is not final.
ChangXin, also known as CXMT, is involved in the manufacturing of chips used in various products, including computer servers and smart vehicles. It competes with prominent players such as Micron Technology Inc. from the US and Samsung Electronics Co. and SK Hynix Inc. from South Korea. Micron Technology Inc. has been advocating for restrictions on ChangXin for some time.
While the US Commerce Department’s BIS and the White House National Security Council have declined to comment on the matter, ChangXin Memory Technologies Inc. has not responded to requests for comments.
The potential sanctions are believed to be a response to a significant chip breakthrough made by Huawei Technologies Co. last year. The US House Foreign Affairs Committee Chairman Michael McCaul highlighted this development, stating that the Biden administration is considering a sanctions package on multiple firms in response to Huawei’s advancements in semiconductor technology.
Huawei’s launch of a 5G phone equipped with an advanced 7-nanometer semiconductor manufactured in China marked a notable achievement, particularly as the Trump administration had restricted Huawei’s access to leading global chipmakers in 2020 due to national security concerns.
In light of Huawei’s technological progress, the Biden administration is reportedly considering stronger measures to protect US national security interests. This includes leveraging the Commerce Department’s Entity List to restrict Chinese companies’ access to cutting-edge American technologies.
Several Chinese tech companies, including Huawei, Semiconductor Manufacturing International Corp. (SMIC), and Yangtze Memory Technologies, are already subject to sanctions under the Entity List. These restrictions prohibit US suppliers from selling certain advanced products, equipment, and components to these companies without special licenses from the Commerce Department.
In addition to imposing sanctions, the US government is also urging its allies, such as the Netherlands, Germany, South Korea, and Japan, to collaborate more closely in containing China’s technological advancements. The Biden administration is advocating for tighter restrictions on China’s access to semiconductor technology to address concerns about China’s growing influence in the global tech industry.
