The U.S. imposed a larger semiconductor ban on China on Friday (7th), triggering a recent sell-off in semiconductor and technology stocks, Thea D. Rozman Kendler, assistant secretary of commerce for export management, reassured the market on Thursday (13th), saying , the US restrictive measures are limited in scope, focusing only on the most critical equipment, actions and entities for national security.
The U.S. Department of Commerce held a conference call on Thursday on an update on China’s export controls. Assistant Secretary of Commerce Kendler pointed out that the Biden administration’s expansion of the semiconductor ban on China is to allow the United States to maintain its lead in the field of technology, while striving to protect national security and foreign policy interests. .
Kendler mentioned: “The Chinese government has invested significant resources in developing supercomputer capabilities, seeking to become a world leader in artificial intelligence (AI) by 2030, and Beijing authorities are using these capabilities to surveil, track and monitor Chinese citizens and to modernize its military. ”
“U.S. action will protect U.S. national security and foreign policy interests, while also sending a clear message that U.S. technological leadership is not only regarding value, but also regarding innovation,” Kendler said.
BIS last week updated new export restrictions on advanced computing and semiconductor manufacturing. Chips that may be used in advanced artificial intelligence computing, computer memory and data storage, and supercomputers that are critical to modern weapons systems will be controlled. At the same time, the equipment and other related products that manufacture such chips are subject to regulation.
The impact of the new U.S. ban on China began to gradually ferment. TSMC announced in France on Thursday that it would lower this year’s capital expenditure to $36 billion, the second revision this year, but the legal person estimates that the new ban will only affect TSMC’s revenue of regarding 1%.
Applied Materials (AMAT-US) on Wednesday cut its fourth-quarter revenue forecast by regarding $400 million and warned that the first quarter of the new year would also suffer.
It is rumored that Intel is 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-US), it is reported that key suppliers including YMTC suspend their support to Changjiang Storage, and also temporarily withdraw their employees from the factory.
Huida issued an earnings warning that it might lose regarding $400 million in potential sales to China in the current third quarter due to new U.S. export rules.
The new ban, the largest U.S. export curb in a decade, sparked a recent sharp sell-off in semiconductor and technology stocks.
Kendler tried to soothe market sentiment on Thursday: “The U.S. restrictions are limited in scope, focusing only on the equipment, operations and entities most critical to national security to ensure minimal disruption to business activity and no disruption to global supply chains.”
half feeThe index has slid more than 260 points since Oct. 6, its five-session losing streak. Inspired by Kendler’s remarks and the good news of TSMC’s financial report,half feeIt rebounded 2.94% to $2,263.2 per share on Thursday.
