In an effort&nbsp;to halt China's semiconductor sector advance and protect its own companies, the United States is considering limiting shipments of American chipmaking equipment to memory chip makers in China. This includes Yangtze Memory Technologies Co Ltd (YMTC). At least four people familiar with the development told Reuters that if President Joe Biden's administration proceeds with the move, it could also hurt South Korean memory chip juggernauts Samsung Electronics Co Ltd and SK Hynix Inc.

Samsung has two big factories in China while SK Hynix Inc is buying Intel Corp's NAND flash memory chips manufacturing business in China.

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The crackdown, if approved, would mean barring the shipment of U.S. chipmaking equipment to factories in China that manufacture advanced NAND chips.

It would mark the first U.S. bid through export controls to target Chinese production of memory chips without specialized military applications, representing a more expansive view of American national security, according to export control experts.

The decision will also seek to protect the only U.S. memory chip producers, Western Digital Corp and Micron Technology Inc. The two companies together represent about a quarter of the NAND chips market.

NAND chips store data in devices such as smartphones and personal computers and at data centers for giants like &nbsp;Amazon, Facebook and Google.&nbsp;

How many gigabytes of data a phone or laptop can hold depends on how many NAND chips it has and how advanced they are. 
The reported move would ban the export of tools to China used to make NAND chips with more than 128 layers, two of the sources told Reuters.

LAM Research Corp and Applied Materials, both based in Silicon Valley, are the primary suppliers of such tools.

However, the sources added that the administration's consideration of the matter is still in the early stages, with no proposed regulations yet drafted.

 
A spokesperson for the Commerce Department, which oversees export controls, did not directly talk about the issue, but noted that "the Biden administration is focused on impairing (China's) efforts to manufacture advanced semiconductors to address significant national security risks to the United States."

YMTC, founded in 2016, is a rising power in manufacturing NAND chips. A White House report released in June 2021 had said that both Micron and Western Digital are under pressure from YMTC's low prices.

YMTC's expansion and low-price offerings present "a direct threat" to Micron and Western Digital, that report said. The report further said that YMTC is China’s "national champion" and receives around $24 billion in Chinese subsidies.

YMTC is under investigation by the Commerce Department over whether it violated U.S. export controls by selling chips to Chinese telecoms company Huawei.

It is now in talks with Apple Inc to supply the top U.S. smartphone maker with flash memory chips, according to a Bloomberg report.

LAM Research Corp, SK Hynix and Micron declined comment on the U.S. policy. Samsung, Applied Materials Inc, YMTC and Western Digital Corp did not immediately respond to requests for comment.

Tension between China and U.S. in the tech sector deepened under Biden's predecessor Donald Trump and have continued since.

Reuters reported on July 8 that the Biden administration is considering restrictions on shipments of tools to make advanced logic chips to China . It reportedly aims to hamstring China's largest chipmaker, SMIC.

The U.S. Congress last week approved legislation aimed at helping the United States compete with China by investing billions of dollars in domestic chip production.

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Chipmakers that take money under the measure would be prohibited from building or expanding manufacturing for certain advanced chips, including advanced memory chips at a level to be determined by the administration, in countries including China.

According to Walt Coon of the consulting firm Yole Intelligence, YMTC accounts for about 5 per cent&nbsp;of worldwide NAND flash memory chip production, almost double from a year ago. Western Digital stands at about 13 per cent and Micron 11 per cent. Coon said YMTC would be greatly hurt by restrictions like those that Biden's administration is contemplating.

 
"If they were stuck at 128, I don't know how they would really have a path forward," Coon said.

Production of NAND chips in China has grown to more than 23 per cent&nbsp;of the worldwide total this year from under 14 per cent&nbsp;in 2019, while production in the United States has decreased from 2.3 per cent&nbsp;&nbsp;to 1.6 per cent&nbsp;over the same period, according to Yole data.

For the American companies, nearly all of their chip production is done overseas.

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In an effort to halt China's semiconductor sector advance and protect its own companies, the United States is considering limiting shipments of American chipmaking equipment to memory chip makers in China.

In an effort to halt China's semiconductor sector advance and protect its own companies, the United States is considering limiting shipments of American chipmaking equipment to memory chip makers in China. This includes Yangtze Memory Technologies Co Ltd (YMTC). At least four people familiar with the development told Reuters that if President Joe Biden's administration proceeds with the move, it could also hurt South Korean memory chip juggernauts Samsung Electronics Co Ltd and SK Hynix Inc. Samsung has two big factories in China while SK Hynix Inc is buying Intel Corp's NAND flash memory chips manufacturing business in China. Also Read | Pandemic effect: US economy set to outpace China first time since 1976 The crackdown, if approved, would mean barring the shipment of U.S. chipmaking equipment to factories in China that manufacture advanced NAND chips. It would mark the first U.S. bid through export controls to target Chinese production of memory chips without specialized military applications, representing a more expansive view of American national security, according to export control experts. The decision will also seek to protect the only U.S. memory chip producers, Western Digital Corp and Micron Technology Inc. The two companies together represent about a quarter of the NAND chips market. NAND chips store data in devices such as smartphones and personal computers and at data centers for giants like Amazon, Facebook and Google. How many gigabytes of data a phone or laptop can hold depends on how many NAND chips it has and how advanced they are. The reported move would ban the export of tools to China used to make NAND chips with more than 128 layers, two of the sources told Reuters. LAM Research Corp and Applied Materials, both based in Silicon Valley, are the primary suppliers of such tools. However, the sources added that the administration's consideration of the matter is still in the early stages, with no proposed regulations yet drafted. A spokesperson for the Commerce Department, which oversees export controls, did not directly talk about the issue, but noted that "the Biden administration is focused on impairing (China's) efforts to manufacture advanced semiconductors to address significant national security risks to the United States." YMTC, founded in 2016, is a rising power in manufacturing NAND chips. A White House report released in June 2021 had said that both Micron and Western Digital are under pressure from YMTC's low prices. YMTC's expansion and low-price offerings present "a direct threat" to Micron and Western Digital, that report said. The report further said that YMTC is China’s "national champion" and receives around $24 billion in Chinese subsidies. YMTC is under investigation by the Commerce Department over whether it violated U.S. export controls by selling chips to Chinese telecoms company Huawei. It is now in talks with Apple Inc to supply the top U.S. smartphone maker with flash memory chips, according to a Bloomberg report. LAM Research Corp, SK Hynix and Micron declined comment on the U.S. policy. Samsung, Applied Materials Inc, YMTC and Western Digital Corp did not immediately respond to requests for comment. Tension between China and U.S. in the tech sector deepened under Biden's predecessor Donald Trump and have continued since. Reuters reported on July 8 that the Biden administration is considering restrictions on shipments of tools to make advanced logic chips to China . It reportedly aims to hamstring China's largest chipmaker, SMIC. The U.S. Congress last week approved legislation aimed at helping the United States compete with China by investing billions of dollars in domestic chip production. Also Read | China's new aircraft carrier killer: Hypersonic missile to take on US warships Chipmakers that take money under the measure would be prohibited from building or expanding manufacturing for certain advanced chips, including advanced memory chips at a level to be determined by the administration, in countries including China. According to Walt Coon of the consulting firm Yole Intelligence, YMTC accounts for about 5 per cent of worldwide NAND flash memory chip production, almost double from a year ago. Western Digital stands at about 13 per cent and Micron 11 per cent. Coon said YMTC would be greatly hurt by restrictions like those that Biden's administration is contemplating. "If they were stuck at 128, I don't know how they would really have a path forward," Coon said. Production of NAND chips in China has grown to more than 23 per cent of the worldwide total this year from under 14 per cent in 2019, while production in the United States has decreased from 2.3 per cent to 1.6 per cent over the same period, according to Yole data. For the American companies, nearly all of their chip production is done overseas. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

US planning a crackdown on memory chip makers in China: Report

The Trump administration is building new and stronger bonds with countries like India to advance its vision of a free and open Indo-Pacific, US Vice President Mike Pence has said, amidst China flexing its military muscles in the region.

The US recently renamed its oldest and largest military command - the Pacific Command - to Indo-Pacific Command, in a largely symbolic move to signal India's importance.

"To advance our vision of a free and open Indo-Pacific, we're building new and stronger bonds with nations that share our values, across the region - from India to Samoa. Our relationships will flow from a spirit of respect, built on partnership, not domination," Pence said Thursday in a major foreign policy speech at the Hudson Institute, a top American think-tank.

"We're forging new trade deals, on a bilateral basis, just as last week, President (Donald) Trump signed an improved trade deal with South Korea, and we will soon begin negotiating a historic bilateral free-trade deal with Japan," he said.

The US, he said, is streamlining international development and finance programs, giving foreign nations a just and transparent alternative to China's debt-trap diplomacy.&nbsp;

In July, the US had announced USD 113 million in new regional investments focused on digital connectivity, infrastructure and energy, amidst China flexing its military muscles in the Indo-Pacific region.

Pence said China was using its power like never before.&nbsp;

Chinese ships routinely patrol around the Senkaku Islands, which are administered by Japan, he said.

Despite China's "reckless harassment", the US Navy will continue to fly, sail and operate wherever international law allows and "our national interests demand", he said.

"We will not be intimidated; we will not stand down," Pence said.

He said America had hoped that economic liberalisation would bring China into greater partnership with the US and with the world, but China has chosen economic aggression, which has, in turn, emboldened its growing military.&nbsp;

Next month, Pence will represent the US in Singapore and Papua New Guinea, at ASEAN and APEC.

"There, we will unveil new measures and programs to support a free and open Indo-Pacific - and on behalf of the President, I will deliver the message that America's commitment to the Indo-Pacific has never been stronger," he said.

To protect US interests here at home, the administration has strengthened CFIUS - the Committee on Foreign Investment in the United States - heightening our scrutiny of Chinese investment in America, to protect national security from Beijing's predatory actions.

China claims almost all of the South China Sea. Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counterclaims over the area.

China has deployed anti-ship cruise missiles and surface-to-surface missile systems in the disputed South China Sea amid frequent forays by US naval and surveillance aircraft over the region to assert the freedom of navigation especially around the artificial islands built by China, where it has also established garrisons.

"When it comes to Beijing's malign influence and interference in American politics and policy, we will continue to expose it, no matter the form it takes. And we will work with leaders at every level of society to defend our national interests and most cherished ideals. The American people will play the decisive role - and in fact, they already are," Pence added.&nbsp;

The Trump administration is building new and stronger bonds with countries like India to advance its vision of a free and open Indo-Pacific, US Vice President Mike Pence has said, amidst China flexing its military muscles in the region.

The Trump administration is building new and stronger bonds with countries like India to advance its vision of a free and open Indo-Pacific, US Vice President Mike Pence has said, amidst China flexing its military muscles in the region. The US recently renamed its oldest and largest military command - the Pacific Command - to Indo-Pacific Command, in a largely symbolic move to signal India's importance. "To advance our vision of a free and open Indo-Pacific, we're building new and stronger bonds with nations that share our values, across the region - from India to Samoa. Our relationships will flow from a spirit of respect, built on partnership, not domination," Pence said Thursday in a major foreign policy speech at the Hudson Institute, a top American think-tank. "We're forging new trade deals, on a bilateral basis, just as last week, President (Donald) Trump signed an improved trade deal with South Korea, and we will soon begin negotiating a historic bilateral free-trade deal with Japan," he said. The US, he said, is streamlining international development and finance programs, giving foreign nations a just and transparent alternative to China's debt-trap diplomacy. In July, the US had announced USD 113 million in new regional investments focused on digital connectivity, infrastructure and energy, amidst China flexing its military muscles in the Indo-Pacific region. Pence said China was using its power like never before. Chinese ships routinely patrol around the Senkaku Islands, which are administered by Japan, he said. Despite China's "reckless harassment", the US Navy will continue to fly, sail and operate wherever international law allows and "our national interests demand", he said. "We will not be intimidated; we will not stand down," Pence said. He said America had hoped that economic liberalisation would bring China into greater partnership with the US and with the world, but China has chosen economic aggression, which has, in turn, emboldened its growing military. Next month, Pence will represent the US in Singapore and Papua New Guinea, at ASEAN and APEC. "There, we will unveil new measures and programs to support a free and open Indo-Pacific - and on behalf of the President, I will deliver the message that America's commitment to the Indo-Pacific has never been stronger," he said. To protect US interests here at home, the administration has strengthened CFIUS - the Committee on Foreign Investment in the United States - heightening our scrutiny of Chinese investment in America, to protect national security from Beijing's predatory actions. China claims almost all of the South China Sea. Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counterclaims over the area. China has deployed anti-ship cruise missiles and surface-to-surface missile systems in the disputed South China Sea amid frequent forays by US naval and surveillance aircraft over the region to assert the freedom of navigation especially around the artificial islands built by China, where it has also established garrisons. "When it comes to Beijing's malign influence and interference in American politics and policy, we will continue to expose it, no matter the form it takes. And we will work with leaders at every level of society to defend our national interests and most cherished ideals. The American people will play the decisive role - and in fact, they already are," Pence added.

US building stronger bonds with nations like India for free and open Indo-Pacific: Mike Pence 

Gold prices nudged down early Wednesday on a firmer dollar, as investors waited for details of the US&nbsp;Federal Reserve's two-day meeting that should give clues whether policymakers will raise interest rates for the third time this year.

FUNDAMENTALS

** Spot gold &lt;XAU=&gt; was down 0.1 per cent at $1,200.18, as of 0057 GMT.

** US gold futures &lt;GCcv1&gt; little changed at $1,204.6 an ounce.

** Investors await details from the two-day Federal Reserve meeting that began on Tuesday, with the US central bank expected to raise benchmark interest rates and shed light on the path for future rate hikes.

** Higher US interest rates typically pressure gold, since it costs to store and insure, but does not pay interest.

** US consumer confidence surged to an 18-year high in September as households grew more upbeat about the labour market, pointing to sustained strength in the economy despite an increasingly bitter trade dispute between the United States and China.

** US President Donald Trump's top trade official said on Tuesday that changing China's economic policies to become more market-oriented "is not going to be easy" even with tariffs now in place on $250 billion worth of Chinese goods.

** Although gold is generally considered to be a safe-haven asset, the months-long trade rift between Washington and Beijing has instead prompted investors to buy US dollars in the belief that the United States has less to lose from the dispute.

** The dollar index &lt;.DXY&gt;, which weighs the greenback against a basket of six major currencies, was up 0.1 per cent.&nbsp;

** Canada is not making concessions needed to reach a deal with the United States for a trilateral NAFTA pact and is running out of time before Washington proceeds with a Mexico-only agreement, a top US official said on Tuesday.

** Donald Trump and Iranian President Hassan Rouhani exchanged taunts at the United Nations General Assembly on Tuesday with the US President vowing more sanctions against Tehran and Rouhani suggesting his American counterpart suffers from a "weakness of intellect."

** Money markets now anticipate the ECB will lift interest rates in September 2019, bringing forward expectations for a first rate hike in a sign of growing conviction that a move will come before Mario Draghi's term as ECB chief ends.

Gold prices nudged down early Wednesday on a firmer dollar, as investors waited for details of the US Federal Reserve's two-day meeting that should give clues whether policymakers will raise interest rates for the third time this year.

Gold prices nudged down early Wednesday on a firmer dollar, as investors waited for details of the US Federal Reserve's two-day meeting that should give clues whether policymakers will raise interest rates for the third time this year. FUNDAMENTALS ** Spot gold <XAU=> was down 0.1 per cent at $1,200.18, as of 0057 GMT. ** US gold futures <GCcv1> little changed at $1,204.6 an ounce. ** Investors await details from the two-day Federal Reserve meeting that began on Tuesday, with the US central bank expected to raise benchmark interest rates and shed light on the path for future rate hikes. ** Higher US interest rates typically pressure gold, since it costs to store and insure, but does not pay interest. ** US consumer confidence surged to an 18-year high in September as households grew more upbeat about the labour market, pointing to sustained strength in the economy despite an increasingly bitter trade dispute between the United States and China. ** US President Donald Trump's top trade official said on Tuesday that changing China's economic policies to become more market-oriented "is not going to be easy" even with tariffs now in place on $250 billion worth of Chinese goods. ** Although gold is generally considered to be a safe-haven asset, the months-long trade rift between Washington and Beijing has instead prompted investors to buy US dollars in the belief that the United States has less to lose from the dispute. ** The dollar index <.DXY>, which weighs the greenback against a basket of six major currencies, was up 0.1 per cent. ** Canada is not making concessions needed to reach a deal with the United States for a trilateral NAFTA pact and is running out of time before Washington proceeds with a Mexico-only agreement, a top US official said on Tuesday. ** Donald Trump and Iranian President Hassan Rouhani exchanged taunts at the United Nations General Assembly on Tuesday with the US President vowing more sanctions against Tehran and Rouhani suggesting his American counterpart suffers from a "weakness of intellect." ** Money markets now anticipate the ECB will lift interest rates in September 2019, bringing forward expectations for a first rate hike in a sign of growing conviction that a move will come before Mario Draghi's term as ECB chief ends.

Gold inches down as dollar firms; Fed in focus