The US is thinking of restricting the supply of US memory chip equipment to Chinese manufacturers.

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The plan is a part of an effort to safeguard American businesses and halt the growth of China’s semiconductor industry.

Samsung Electronics Co. and SK Hynix Inc., two of South Korea’s largest manufacturers of memory chips, might suffer if the Biden administration keeps up this strategy. Additionally, SK Hynix Inc. is purchasing the Chinese NAND flash chip business of Intel Corp.

(INTC.O), which has two significant plants in China. If accepted, it will be prohibited for US semiconductor manufacturing equipment to supply Chinese facilities that make sophisticated NAND chips.

The US will aim to use export controls to target Chinese manufacture of memory chips that do not have specific military applications for the first time, according to specialists in export control, reflecting a more comprehensive understanding of American national security.

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