New US export rules targeting China’s semiconductor sector are not expected to affect ASML’s financial outlook. The Dutch chip equipment maker reaffirmed its guidance for 2025 group sales of €30-35 billion, with China’s share declining to 20%, down from around 50% in 2023.
The updated US restrictions, Washington’s third crackdown in as many years, limit exports to 140 Chinese companies, including key industry players. ASML acknowledged potential impacts on its deep ultraviolet lithography system exports if enforced by Dutch authorities. However, the company emphasised its long-term demand projections remain intact, driven by global needs.
The Dutch government aligned with US security concerns but stressed independent threat assessments guide its export controls. New rules also impose tighter regulations on computational lithography software, vital for chip yield and quality, a field where ASML holds a leading position.
ASML shares rose modestly in Amsterdam trading, closing 0.9% higher at €664.10. Despite geopolitical headwinds, the firm reiterated confidence in the semiconductor industry’s overall growth trajectory.
AI hardware startup Tenstorrent has secured a $693M Series D funding round, valuing the company at over $2.6B. The investment, led by Samsung Securities and AFW Partners, includes participation from Hyundai and Bezos Expeditions, among others. Founded in 2016 and based in Toronto, Canada, Tenstorrent aims to challenge Nvidia’s dominance in the AI chip market.
Tenstorrent’s CEO, Jim Keller, a renowned microprocessor engineer, announced plans to develop AI training servers and expand its engineering team using the new capital. The company has also committed to releasing a new AI processor every two years, with signed customer contracts amounting to nearly $150M. This move positions Tenstorrent among a growing number of startups racing to innovate in AI hardware, alongside competitors such as Axelera, Etched, and Groq.
The funding highlights escalating investor interest in alternative AI chipmakers as demand for cutting-edge computing solutions soars. With its ambitious roadmap and backing from high-profile investors, Tenstorrent is poised to carve out a significant share of the burgeoning AI hardware market.
Trade tensions between the USA and China are escalating in the semiconductor sector, as four of the top Chinese industry associations warned against purchasing US chips, claiming they are ‘no longer safe’ and they threaten national security principles. The response follows the latest US crackdown, restricting exports to 140 Chinese companies, including prominent chip equipment makers like Naura Technology Group.
However, the US semiconductor trade group dismissed these concerns, arguing that US chips remain safe and reliable. It called for more targeted export controls aimed at national security rather than broad, punitive measures.
Despite these assurances, the Chinese associations, which represent major industries from telecommunications to the digital economy, opted for a considerable change of course in the mindset of Chinese businesses. They are now advised to consider non-US suppliers to safeguard their operations and reduce reliance on US technology.
China has also imposed restrictions, notably a ban on exports of critical rare minerals used in military applications, solar cells, and fibre optic cables. The measure is seen as Beijing’s attempt to exert leverage and retaliate against the US actions, showing a more aggressive stance in this tech export war. Experts suggest that while the warnings from Chinese associations may be largely advisory, the new mineral export bans are a far more significant measure that could have a lasting impact on the global supply chain.
The recent crackdown and the retaliatory moves have also raised alarms in Washington, with the US National Security Council vowing to take necessary steps to deter further ‘coercive actions’ from China. The US is also working on diversifying its supply chains away from China, particularly in the semiconductor sector, where China’s growing self-reliance is seen as a challenge to American dominance.
Dutch semiconductor company Nexperia confirmed its commitment to comply with US restrictions following the addition of its Chinese parent company, Wingtech, to the US Department of Commerce’s entity list. Wingtech now faces licensing requirements for accessing US technology, a move targeting companies seeking sensitive chip manufacturing technologies.
A Nexperia spokesperson clarified that the restrictions imposed on Wingtech do not directly impact Nexperia or its subsidiaries. However, Nexperia will ensure compliance where its interactions with Wingtech are concerned, reflecting its commitment to adhere to international trade regulations.
As one of the largest manufacturers of basic computer chips, including diodes and transistors, Nexperia has been expanding its global footprint. Earlier this year, the company increased its operations in Hamburg, Germany, signalling continued growth despite challenges linked to its parent company.
The US Commerce Department added Wingtech to the list, citing concerns over its efforts to acquire technologies crucial to the defence industries of the US and its allies.
China has imposed a ban on exports of key minerals, including gallium, germanium, and antimony, to the US, citing national security concerns. The new restrictions, which take immediate effect, are part of Beijing’s broader effort to control dual-use materials that have both civilian and military applications. These minerals are critical in semiconductor production and military technology, such as infrared systems and night vision goggles. The export ban also includes graphite items, which will face stricter end-use reviews.
This move follows the US’s recent crackdown on China’s semiconductor industry, which included new export curbs targeting 140 Chinese companies. The escalation is part of the ongoing trade tensions between the two economic giants. While the US has not been a major market for these minerals this year, China’s dominance in their production, accounting for over 90% of gallium and germanium, makes the move significant for global supply chains.
Experts warn that the restrictions could further tighten access to these essential materials, particularly as prices for antimony have surged by over 200% this year. With the US also imposing its own tariffs and export controls, the situation is expected to intensify as both countries brace for continued economic rivalry, especially with President-elect Donald Trump’s stance on China.
South Korean AI chipmakers Rebellions and Sapeon Korea have officially merged, forming a new company valued at approximately USD 928 million. The combined entity will continue under the name “Rebellions,” led by CEO Sunghyun Park. The merger aims to enhance the company’s global competitiveness in the fast-growing AI chip market by leveraging expertise across South Korea‘s telecom, government, and semiconductor sectors.
The merger brings together Rebellions, a fabless AI chip startup established in 2020, and Sapeon Korea, an affiliate of SK Telecom, to combine their strengths in AI chiplet technology. This integration is expected to accelerate innovation and improve efficiency, particularly in developing next-generation AI chips like REBEL, designed to meet the increasing demands of AI applications.
Looking ahead, Rebellions plans to expand internationally, with targeted entry into markets such as the United States, Saudi Arabia, and Japan. Strategic partnerships, including collaborations with SK Telecom and SK hynix, will help fuel the company’s global ambitions and support its expansion efforts.
Washington’s latest restrictions on semiconductor exports to China have heightened trade tensions between the world’s two largest economies, fueling concerns about potential Chinese countermeasures. Beijing, which has vowed to protect its interests, possesses several tools to retaliate against US firms, including tightened security reviews and trade restrictions.
China has already wielded security reviews against US companies, such as barring government purchases of Micron products in 2022. Analysts warn Intel, a significant player in China’s chip market, could face similar scrutiny. Additionally, US firms have historically reported bureaucratic hurdles like customs delays and intensified inspections during strained relations, underscoring the broader risks of doing business in China.
Beijing also maintains its ‘unreliable entities list,’ targeting foreign companies that are seen as violating Chinese interests. Actions under this framework include probes into firms like PVH Corp for compliance with US restrictions on Xinjiang cotton. Meanwhile, export controls on critical minerals, such as gallium and graphite—key to chipmaking and electric vehicles—are emerging as another leverage point in the escalating trade conflict.
China’s expanded oversight of dual-use technologies, effective December 1, adds another layer of control. By regulating items with civilian and military applications, Beijing aims to monitor US reliance on its supply chains. As tensions rise, both sides face economic and technological repercussions that could redefine global trade dynamics.
Chinese semiconductor firms targeted by new US export controls are doubling down on localising their supply chains and leveraging stockpiled resources to maintain production. The restrictions, the third major US crackdown in three years, impact 140 companies and focus on chipmaking equipment, software, and high-bandwidth memory. Despite the curbs, Chinese chip stocks saw slight gains as analysts noted the measures were less severe than expected.
Key companies like Naura Technology and Empyrean have vowed to accelerate domestic technology development. Some, such as Beijing Huafeng Test & Control Technology, reported fully localised supply chains. While the measures hit China’s reliance on foreign manufacturing equipment, imports of semiconductor machinery surged by a third this year, showing resilience in the face of external pressures.
The exclusion of ChangXin Memory Technologies (CXMT), a major AI chip component maker, surprised analysts. The move eased concerns for South Korean suppliers reliant on Chinese revenue, with shares of key partners like Jusung Engineering and Mirae Corp rebounding. The latest curbs reflect ongoing efforts to balance US security goals with the global semiconductor market’s interdependencies.
The United States has imposed its third major round of export controls on China’s semiconductor industry in three years, targeting 140 companies with restrictions on chipmaking equipment, software, and advanced memory chips. Among those affected are prominent firms like Naura Technology, ACM Research, and SiCarrier Technology, as well as entities linked to Huawei, a key player in China’s chip advancements.
The measures, aimed at stalling China’s progress in AI and military technologies, also introduce new licensing requirements for US and foreign companies shipping equipment with US components to China. Commerce Secretary Gina Raimondo stated the restrictions are intended to block China’s military modernisation. Despite the sanctions, Chinese officials condemned the move as “economic coercion” and vowed countermeasures.
The rules also impact allies, with restrictions extending to chipmaking equipment from countries like Singapore and South Korea, while Japan and the Netherlands are exempt. Some global players, including Dutch firm ASML, downplayed the immediate impact but acknowledged potential long-term effects. These actions come as China accelerates efforts toward self-sufficiency in semiconductor production, though it remains years behind industry leaders like Nvidia and ASML.
This latest crackdown follows the sweeping 2022 curbs on high-end chips and manufacturing tools under the Biden administration, reflecting a sustained US effort to curtail China’s access to critical technologies.
The United States will implement sweeping new restrictions on semiconductor exports to China starting Monday, targeting 140 Chinese firms to curb Beijing’s technological advancements, especially in AI and military applications. The measures, part of the Biden administration’s continued crackdown on China’s chip industry, include export controls on high-bandwidth memory (HBM) chips, 24 chipmaking tools, and advanced semiconductor equipment manufactured in countries like Singapore and Malaysia.
Among the companies affected are major Chinese chip equipment makers such as Naura Technology Group and Piotech, alongside firms tied to Huawei, which remains central to China’s chipmaking ambitions. Nearly two dozen additional semiconductor and investment firms will be added to the US Entity List, severely restricting their access to American technology. In response, Chinese officials criticised the move, claiming it undermines global trade and supply chains while vowing to protect their firms’ interests.
The restrictions also expand the foreign direct product rule, giving the US authority to regulate exports to China of equipment containing even minimal American technology. This move could disrupt global suppliers, although Japan and the Netherlands are exempt due to their collaboration with the US on similar controls. The crackdown follows a broader US strategy to limit China’s ability to compete in advanced technologies, building on export curbs introduced in 2022.
Despite China’s efforts to become self-reliant in semiconductors, it remains years behind global leaders like Nvidia and ASML. Meanwhile, the restrictions are expected to hit companies such as Lam Research, Applied Materials, and Samsung, which derives a significant share of its HBM chip revenue from China. With the upcoming administration of Donald Trump expected to maintain a hardline stance on China, the latest measures underscore ongoing US efforts to preserve its technological edge.
