China's Semiconductor Industry 'Decapitated Overnight': What 'Annihilation Looks Like' - Applied Material

The Biden administration unveiled a comprehensive strategy last week to move the U.S. forward and hold China back in the production of advanced semiconductors, virtually eliminating China's semi industry overnight, escalating the high-tech battle with Beijing.

Every American executive and engineer working in Chinas semiconductor manufacturing industry resigned yesterday, paralyzing Chinese manufacturing overnight, wrote Twitter user @lidangzzz, translated by Rhodium Group analyst Jordan Schneider.

One round of sanctions from Biden did more damage than all four years of performative sanctioning under Trump.

What happened: Yangtze Memory Technologies Co, a company owned by China, and 30 other semiconductor companies in China have been put to the Unverified List by the Bureau of Industry and Security, a division of the U.S.Department of Commerce.

Sanctions imposed by the Biden administration also prevent businesses from sending the cutting-edge processors required to run or train the most efficient AI algorithms to China.

The extensive new regulations are intended to keep China's AI industry in the stone age as the U.S. and other Western nations advance.

The limitations also prohibit the export of chip manufacturing tools and design software and forbid the top silicon fabs in the world, such as Taiwan Semiconductor Mfg. Co. Ltd. TSM and Samsung, from producing cutting-edge chips for Chinese businesses.