US chip manufacturers are advised to wait until China's restrictions end
US chip manufacturers are advised to wait until China's restrictions end

USA: This week, US chip equipment makers got a serious message from Commerce Secretary Gina Raimondo: You'll have to wait nine months for Washington and its allies to come to an agreement on tighter new rules that limit access to China. will limit. specific technologies.

The Netherlands and Japan are home to some of the biggest manufacturers of chipmaking equipment, and the US is working on a deal that would ban the sale of such equipment to China.

Export restrictions already apply to US businesses they claim will cost them billions of dollars in revenue, even as their top rivals in Europe and Japan are subject to fewer restrictions on sales to China.

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According to people with direct knowledge of the meeting, Raimondo informed representatives of American companies that it could take six to nine months to reach an agreement intended to level the playing field.

On October 7, Washington unveiled a new set of export rules aimed at restricting China's access to state-of-the-art chips and machinery to manufacture semiconductors based on American technologies.

According to the people, who asked to remain anonymous because they were speaking about a private conversation, Raimondo made the remarks on Wednesday, when he met with representatives of equipment manufacturers including Lam Research Corp and KLA Corp.

A US Commerce Department spokeswoman declined to comment. A request for comment from representatives for Lam Research and KLA did not immediately elicit a response.

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American firms LAM, KLA, and Applied Materials Inc., as well as ASML Holding in the Netherlands and Tokyo Electron in Japan, are the market leaders for chip production equipment globally.

Suppliers from other countries currently have more freedom when dealing with China. The US trilogy requires restrictions on products that their international rival can export to China as soon as possible.

Investors have been cautioned by Applied Materials, Lam Research and KLA that their revenue will be affected by the new export control rules.

Unless sanctions are implemented more fairly, they run the risk of losing market share in China to foreign competitors, which will increase revenue that can be used to create new products.

Analysts predict the three US companies will experience a more severe revenue decline than their Japanese counterparts, despite the fact that the market for chipmaking equipment is likely to contract next year. Washington is preparing to put further pressure on allies to stop selling chip equipment to China.

According to Bloomberg News, senior US National Security Council official Tarun Chhabra and Under Secretary of Commerce for Industry and Security Alan Estevez are scheduled to visit the Netherlands later this month for talks on China-chip sanctions, though later this month. No compromise is expected. discussions.

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Estevez predicted last week that a deal would soon be reached with the allies. He said he and other officials, including National Security Adviser Jake Sullivan and Raimondo, were talking to colleagues on the issue.

He said he wants the rules for US companies to be "fair with their competition around the world, and it is fair for their competition with each other."

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