US considers limiting chipmaking equipment for Chinese memory chip makers: Report

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The Biden administration is considering whether to limit chipmaking equipment from US companies to Chinese memory chip makers.

The news outlets, citing four people familiar with the matter, said that would be done to protect domestic memory chip makers. As Western Digital (Nasdaq: WDC) and Micron Technology (Nasdaq: MU), but also affect Chinese companies, such as Yangtze Memory Technologies.

Although it is under investigation from the US Department of Commerce as to whether it violated an agreement by selling chips to Chinese telecommunications Huawei, which is already on the banned list, Yangtze Memory Technologies has agreed with Apple (AAPL) to supply flash memory chips. is in discussion with.

However, it could also negatively impact South Korean memory makers such as Samsung (OTCPK: SSNLF) and SK Hynix, as Samsung has two factories in China and SK Hynix is ​​buying the Intel (INTC) flash memory chips business. China.

If approved, the action would put a moratorium on equipment for manufacturing advanced NAND chips, marking the first time the US would target the production of memory chips that do not have specific military purposes, Reuters said.

Lam Research (NASDAQ: LRCX) and applied materials (Nasdaq: Amat) are the two major suppliers of equipment for making NAND chips with more than 128 layers, which are the devices under consideration to be banned.

Based on the report, Micron (MU) and Western Digital (WDC) gained early gains of 2.5% and 2%, respectively. Shares of Lam Research (LRCX) fell a little more than 0.5% to $496.86, while Applied Materials (AMAT) was partially higher on Monday.

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Lam Research (LRCX), Applied Materials (AMAT), Micron (MU), Western Digital (WDC) and the US Commerce Department did not immediately respond to a request for comment from Seeking Alpha.

Last month, Micron said it would bring leading memory manufacturing to the US after Congress passed a $280B “chips and science” law.

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