US Bans Samsung From Supplying Advanced Chips to China

Following TSMC, Samsung is now prohibited by the US from supplying 7nm and below chips to Chinese companies, further escalating trade tensions.

Following a similar ban on TSMC, the United States has now prohibited Samsung from supplying advanced chips (7nm and below) to Chinese companies. This move further escalates trade tensions between the US and China and severely limits options for Chinese firms seeking advanced semiconductors.

US Bans Samsung From Supplying Advanced Chips to China

According to the Economic Daily News, Samsung has notified its customers about the ban but declined to comment officially. This restriction comes at a difficult time for Samsung's foundry business, which has been struggling with low yields on its 3nm GAA process and losing clients to TSMC.

The ban effectively leaves Chinese companies with few alternatives for advanced chips. While SMIC, China's largest chipmaker, offers a 7nm process, its reliance on older DUV equipment limits production capacity. Although both Huawei and SMIC have reportedly developed 5nm technology, there's no information on its implementation in commercial products.

These trade sanctions might motivate China to accelerate its efforts to become self-sufficient in semiconductor manufacturing, reducing its dependence on foreign companies subject to US influence. However, achieving such independence will likely take years.

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