The US government’s new export controls are wreaking havoc on China’s chip industry

THREAD: The US government’s new export controls are wreaking havoc on China’s chip industry.

New rules around "US persons" are driving an "industry-wide decapitation."

The following is the translation of a thread posted earlier this week by @lidangzzz.

“Lots of people don’t know what happened yesterday [Oct 8].

To put it simply, Biden has forced all Americans working in China to pick between quitting their jobs and losing American citizenship.

Every American executive and engineer working in China’s semiconductor manufacturing industry resigned yesterday, paralyzing Chinese manufacturing overnight.

One round of sanctions from Biden did more damage than all four years of performative sanctioning under Trump.

Although American semiconductor exporters had to apply for licenses during the Trump years, licenses were approved within a month.

With the new Biden sanctions, all American suppliers of IP blocks, components, and services departed overnight —— thus cutting off all service [to China].

Long story short, every advanced node semiconductor company is currently facing comprehensive supply cut-off, resignations from all American staff, and immediate operations paralysis.

This is what annihilation looks like: China’s semiconductor manufacturing industry was reduced to zero overnight. Complete collapse. No chance of survival.

[Translation of the DMs in a screenshot:

Person A: Everyone from Lam Research at Yangtze Memory left today, and on the 12th the AMAT folks will leave as well

Person B: Yes. Not just Yangtze, but also HLMC, ICRD’s Jiading fab, Hefei’s CXMT DRAM fab

All leaving

Even Geehy in Hangzhou is pausing operations]

Q: Why hasn’t Chinese media reported on this?

A: I don’t know.

The only possible explanation is that this major story, and its future ramifications, will bring severe damage to the supposedly “continuously flourishing” semiconductor industry and Chinese national security as a whole.

The level of embarrassment is on par with Pelosi’s Taiwan visit.

Many people don’t understand why this is annihilation.

ASML has stopped providing services and support to mainland China.

Originally tweeted by Jordan Schneider (@jordanschnyc) on October 14, 2022.

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