The Daily Telegraph

Apple deal for China chips hit by Biden ban

- By Matthew Field

APPLE has been forced to cancel plans to use Chinese memory chips for its iphones after Joe Biden, the US president, hit Beijing with fresh technology sanctions.

The White House has targeted China’s semiconduc­tor sector to block its access to advanced graphics and memory processors. US officials also added memory chip maker Yangtze Memory Technologi­es to a blacklist, called the Unverified List, which lumps new licensing procedures on any US company wishing to trade with it.

Apple had been considerin­g using Yangtze memory chips in future iphones, which could undercut Apple rivals such as Samsung.

However, Nikkei reported those efforts had now been placed on hold after the latest round of US restrictio­ns. Apple did not respond to a request for comment.

New rules issued by the Biden administra­tion have caused chaos for Chinese and Western semiconduc­tor makers. The latest block US citizens from supplying or working on technology that may help China acquire highpowere­d semiconduc­tors.

This has forced companies to halt contracts with Chinese chip-makers and recuse American staff from operations involving them.

The new White House rules are expected to impact hundreds of staff and executives at top semiconduc­tor makers who hold dual US citizenshi­p or green cards.

Dutch chipmaker ASML emailed staff warning all US employees and green card holders that they are “prohibited from providing certain services to advanced fabs in China”.

Shares in ASML fell 6.5pc in early trading yesterday.

The new US rules have wiped billions from the market value of American companies involved in making software tools for the semiconduc­tor industry, including Cadence Design Systems and Synopsys.

Us-listed Applied Materials, which sells software to chipmakers, warned the new curbs would lead to an immediate loss of $250m (£220m) to $550m worth of business.

 ?? ?? Joe Biden’s White House has tightened the screw on China’s chip makers
Joe Biden’s White House has tightened the screw on China’s chip makers

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