Chinese companies respond to U.S.' latest semiconductor export controls

Several Chinese companies on Tuesday responded to the U.S.' third crackdown in three years targeting China's semiconductor industry, which added Chinese entities to the export control entity list. According to their statements, U.S.' latest semiconductor export control measures are not expected to have a major impact on their business operations.

Empyrean Technology said in a public announcement that it observed that the company and related subsidiaries had been included in the export control entity list. The core technologies involved in the company's electronic design automation (EDA) tool software come from its own patents and technologies formed by internal research, and the company owns the complete rights to the relevant technologies, which can ensure the independence and integrity of its business operations and the safety and reliability of its technical services.

The company strictly abides by international business practices and laws and regulations and conducts its business in a compliant manner. The impact of being included in the list of entities by the U.S. is generally controllable, according to Empyrean Technology.

At present, the company's operation and financial situation remain normal, and its businesses are advancing steadily. The enterprise will seize the development opportunity to accelerate the localization of full-flow EDA tools.

Skyverse Technology responded that the company in four or five years ago has been laid out in advance to cope with external measures, mainly on parts and components manufacturing and sales. "We have already realized full self-production of key components, and our sales area is also mainly oriented to the domestic market. This external control is not expected to have a major impact on the company," the company said.

NAURA Technology Group responded that the company mainly focuses on developing a controllable supply chain. "Currently, 90 percent of the company's revenue comes from the domestic market, and less than 10 percent in overseas markets, so this impact is expected to be small."

"The U.S. move again demonstrated its restriction and suppression policy [toward China], which will damage the highly globalized semiconductor industry, limiting the industry's ability to develop and having an extremely negative impact on innovation," Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Tuesday.

Zhou noted that China is not only an important market for semiconductor sector, but also an important participant. The U.S. move will not only fail to achieve its objectives but also lead to the increase in uncertainty in the global supply chain.

Moreover, the capital flow, technological cooperation and the long-term layout of related enterprises will be affected, creating an obstacle to the subsequent supply market and the upgrading of the sector. "The U.S. is also an important beneficiary of semiconductors, and if it does not have access to a stable supply, its industry will be correspondingly less efficient, and then capital may choose to leave the country. It is very unfavorable for all parties," Zhou noted.

The semiconductor industry is very global, and the abuse of control measures by the U.S. seriously impedes normal economic and trade exchanges among countries, seriously undermines market rules and international economic and trade order, and seriously threatens the stability of the global industrial chain and supply chains. The global semiconductor industry, including U.S. companies, has been seriously affected. China will take necessary measures to firmly safeguard its legitimate rights and interests, a spokesperson from China's Ministry of Commerce said on Monday night.