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Western suppliers cut ties with Chinese chipmakers as U.S. curbs bite

By Jeanne Whalen

18 Oct 2022 · 3 min read

Editor's Note

The US order to ban high-end semiconductor related exports is the strongest such restrictions yet. It's already forcing many equipment suppliers to stop servicing Chinese clients.

Western suppliers have started cutting ties to some Chinese chipmakers in response to new U.S. export controls, in another sign of the partial technology divorce the Biden administration is mandating to stymie China's military development.

One large supplier of chip-making equipment, ASML, told U.S. employees to stop installing or servicing equipment at any Chinese chip factory while it sorts through the new rules. Another equipment provider, Applied Materials, said the export restrictions will prevent it from making sales of roughly $400 million in the fourth quarter.

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