The U.S. imposed a broader semiconductor ban on China on Friday (7), triggering a recent sell-off in semiconductor and technology stocks, Thea D. Rozman Kendler, assistant secretary of trade for export management, reassured the market on Thursday. (13), saying that US restrictive measures are limited in scope, focusing only on the equipment, actions and entities most critical to national security.
The US Department of Commerce held a conference call on Thursday on an update on Chinese export controls. Assistant Secretary of Commerce Kendler pointed out that the Biden administration’s expansion of the semiconductor ban on China will allow the United States to maintain its advantage in the technology sector while seeking to protect national security and security. foreign policy interests.
Kendler said, “The Chinese government has invested significant resources in developing supercomputer capabilities, seeking to become a world leader in artificial intelligence (AI) by 2030, and the authorities in Beijing are using these capabilities to oversee, track and monitor Chinese citizens and to modernize its military … “
“US action will protect US national security and foreign policy interests, while also sending a clear message that US technology leadership is not just about value, but also about innovation,” Kendler said.
Last week, the BIS updated new export restrictions on advanced computing and semiconductor manufacturing. Chips that can be used in advanced artificial intelligence processing, computer memory and data storage, and supercomputers that are critical to modern weapon systems will be checked. equipment and other related products that produce such chips are subject to regulation.
The impact of the new US ban on China gradually began to ferment. TSMC announced Thursday in France that it would reduce this year’s capital spending to $ 36 billion, the second revision this year, but the person legal estimates that the new ban will only affect TSMC’s revenue of about 1%.
Applied materials (AMAT-USA) Wednesday cut its projected fourth quarter revenue by about $ 400 million and warned that the first quarter of the new year would also suffer.
Intel is rumored to be planning a new wave of layoffs and will announce this news when it releases its latest earnings report on October 27. Applied Materials (AMAT), Kelei (KLAC-US) and Colin R&D (LRCX-USA), major suppliers, including YMTC, were reported to suspend their support of Changjiang Storage and temporarily withdraw their employees from the factory.
Huida has issued an earnings warning that it could lose about $ 400 million in potential sales in China in the current third quarter due to the new U.S. export rules.
The new ban, the biggest drag on US exports in a decade, has triggered a recent strong sell-off in semiconductor and technology stocks.
Kendler on Thursday sought to soothe market sentiment: “US restrictions are limited in scope, focusing only on the equipment, operations and entities most critical to national security to ensure minimal disruption to business and no disruption of chains. of global procurement “.
half shareThe index has slipped more than 260 points since October 6, its five-game losing streak. Inspired by Kendler’s remarks and the good news of TSMC’s financial report,half shareIt rebounded 2.94% to $ 2,263.2 per share on Thursday.
