Biden gambles with global chip supply by halting US firms’ operations in China
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The US has taken its next step in its boldest efforts yet to disrupt China's military by blocking access to memory chips and chip-making equipment that are crucial to modern defense systems like stealth aircraft, satellites, and cruise missiles. The Wall Street Journal reported yesterday that US chip equipment suppliers have withdrawn dozens of employees with key expertise and paused business activities at Yangtze Memory Technologies Co. (YMTC), "China's leading memory chip maker."
This is different from previous actions the US has taken by targeting specific technologies or individual firms, the Journal reported. Among key suppliers that "people familiar with the matter" told WSJ were halting operations are two major US firms, KLA Corp. and Lam Research Corp. Just weeks ago, the investment advising company The Motley Fool suggested that Lam Research "may be one of the most important companies in the world," noting that Intel is a key customer and that it serves a global market. Reuters reported that KLA losing its China market has restricted the company from its "largest geographic market, bringing in $2.66 billion in sales."
YMTC and Lam Research didn't respond to Ars' or WSJ's requests for comment. KLA Corp. chief communications officer Randi Polanich confirmed to Ars that "as of now, we cannot comment."