On Friday, the United States announced new restrictions banning U.S. semiconductor equipment manufacturers from exporting to China. The sanctions are aimed at blocking China's ability to obtain advanced semiconductors used in supercomputing due to national security concerns, the US claims.

As reported in the Financial Times (opens in new tab), U.S.-based equipment suppliers must cease all business with Chinese semiconductor companies. This move will force Chinese chipmakers to look elsewhere for manufacturing tools and equipment, which will be a major blow to China's semiconductor industry.

U.S. semiconductor equipment manufacturers such as Lam Research, Applied Materials, and KLA Corporation have already begun work to comply with the new regulations. according to the FT, Lam is "pulling support staff" from Chinese chipmakers. according to the FT According to the FT, Lam is "pulling support staff" from Chinese chip makers.

Another chip tool maker, ASML, has told all of its U.S. employees to "refrain from providing service, shipping, or support, directly or indirectly, to Chinese customers until further notice."

According to a statement from the Commerce Department's Bureau of Industry and Security (BIS) (open in new tab), the new sanctions are part of an "ongoing effort to protect U.S. national security and foreign policy interests."

The BIS also said that the restrictions would hinder China's "purchase and manufacture of certain high-end chips used for military applications."

It states that it would hinder its ability to.

U.S. citizens and companies wishing to provide services to Chinese chipmakers would need special approval from the Department of Commerce. Chinese chipmakers could apply to the U.S. for permission to do business with these companies.

TSMC and SK Hynix told the FT that both companies received a one-year exception.

Reuters (opens in new tab) reports that enforcement of these new rules restricting the export of sensitive technology to China will be strict. This is part of a "comprehensive policy to address concerns arising from China's use of these specific technologies to the detriment of U.S. national security and foreign policy interests" in recent months.

According to the FT, the China Semiconductor Industry Association said in a statement last Thursday that it "hopes the US government will correct its misguided course of action."

Another company well known to PC gamers is Nvidia, which is facing complications in its business in China. The company was ordered to stop selling some of its more powerful graphics cards to Chinese companies (open in new tab), but shortly after was given a one-year exception to ensure the continuation of its distribution operations in Hong Kong.