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The United States has strengthened semiconductor regulations against China. The approvals for Samsung and SK Hynix have also been revoked. This is a somewhat unexpected development.
Both companies need a license to use US-made equipment in the Chinese factory. Sounds troublesome.
The Ministry of Commerce seems to be okay with maintaining the operations of existing factories. But expansion and transition to advanced technologies are not allowed. It's tough.
Demand from China for US suppliers seems to be decreasing. Stock prices have also fallen. KLA dropped by 2.4%.
On the other hand, a Huawei executive made a confident statement. China has almost overcome the regulations. Is that true?
It seems that domestic technology has caught up with American products. The CloudMatrix 384 system looks impressive.
This regulation may hit the Chinese semiconductor industry hard. But on the flip side, it might accelerate technological innovation. I wonder what will happen.
The US-China relationship looks interesting from here on.