US: ready to ban US technology use in China (Wsj)
Chinese exports of rare-earth magnets plummeted 52.9 per cent in May compared to April. China is the world's largest producer of rare earths, with about 90 per cent
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A US official has informed major global semiconductor companies of the administration's intention to cancel exemptions allowing the use of American technology in China. The Wall Street Journal reports this, citing sources familiar with the matter.
Jeffrey Kessler, Undersecretary of Commerce for Industry and Security at the Department of Commerce, told Samsung Electronics, SK Hynix, and Taiwan Semiconductor Manufacturing that he would rescind these waivers, the WSJ reported.
Shares of US chip equipment manufacturers supplying chip production facilities in China tumbled following the news. KLA Corp lost 3.8%, Lam Research 4.7%, and Applied Materials 3.8%.
A Department of Commerce spokesperson said in a note: "Chip manufacturers will still be able to operate in China. The new control mechanisms on chips mirror the licensing requirements that apply to other semiconductor companies exporting to China and provide the US with a fair and reciprocal process'. This move would make it more difficult for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries.
China, -52.9% export of rare earth magnets in May
On Friday, meanwhile, Chinese Customs released data on exports of rare earth magnets, which also plummeted in May, more than halving (-52.9 per cent) compared to April (-70 per cent year-on-year), to the lowest levels in a single month since February 2020. According to China Customs, shipments stopped at 1,238 metric tonnes, amid restrictions imposed by Beijing during the most acute phase of the trade war with the US, in April. China, with a share of around 90%, is the world's largest producer of rare earths, minerals needed to make magnets essential for the automotive, electronics and defence industries.
