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World’s top chip equipment suppliers halt business with China

New US export controls force toolmakers to suspend sales and services to Chinese semiconductor companies

Leading US chip toolmakers have suspended sales and services to semiconductor manufacturers in China, as new US export controls disrupt the Chinese tech industry.Lam Research, Applied Materials and KLA Corporation, US companies which hold dominant shares in certain segments of the semiconductor manufacturing process, have all taken immediate measures to comply with the new rules, according to several people with direct knowledge of the matter.

ASML, the Netherlands-based global leader in chipmaking equipment, has told its US staff to stop serving all Chinese customers while it assesses the sanctions.

The new restrictions, announced on Friday last week, ban the export to China of US semiconductor equipment that cannot be provided by any foreign competitor. They also impose a licence requirement for exports of US tools or components to China-based fabrication plants, or fabs, that make advanced chips, and for exports of items used to develop Chinese homegrown chip production equipment.

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