The US government plans to clampdown on Intel, SK Hynix and Samsung manufacturing of chips in China as concerns over AI technology continue to unfold. This will by enacted by revoking their authorisations to receive manufacturing equipment in China.
In a 29 August filing, the Federal Register, which is the official journal of the US federal government, stated the validated end-user (VEU) authorisations for the chipmakers to produce chips in China will be removed.
The government’s end-user review committee (ERC), which is responsible for administering the VEU, removed Intel, SK Hynix and Samsung from the VEU programme.
The ERC is primarily composed of representatives from the US Departments of State, Defense, Energy and Commerce.
Reuters reported the chipmakers need to obtain new licences to buy equipment in China.
The news agency also reported the licensing change could reduce sales to China by US equipment manufacturers KLA Corp, Lam Research and Applied Materials.
Reuters also noted China-based equipment makers could benefit from the revocations by suppling companies with their gear.
Intel sold a factory in Dalian, China to SK Hynix five years ago, but Reuters reported it continues to manufacture wafers there.
The rule is effective 120 days after the Federal Register publishes it on 2 October, according to the filing.
Source: Mobile World Live
Image Credit: Stock Image
