Ying CAI and Colin have ordered suppliers to stop using Chinese parts

The Wall Street Journal reported that under pressure from the U.S. government, U.S. chip equipment makers Applied Materials and Lam Research have begun requiring suppliers not to use Chinese components, even if they have Chinese money or shareholders. Analysts believe that this move may be high costs, because it is not easy to find non-Chinese alternatives at the same price.

The U.S. semiconductor industry is cutting Chinese companies out of its supply chain in response to the U.S. government's push to curb China's participation in sensitive next-generation technologies. In particular, U.S. restrictions on Chinese imports continue to tighten, and now both major U.S. presidential candidates have pledged to take a tougher line on trade with China, especially in the semiconductor industry, which is considered vital to U.S. national security.

According to people familiar with the matter, a series of downstream suppliers of chip equipment makers have recently received notices that they must find substitutes for certain components that need to be supplied by China, or risk losing their supplier status. The companies relaying the message include Applied Materials and Colin Research and Development, both of which are among the world's largest makers of critical semiconductor production equipment, the people added.

The difficulty of finding alternatives may increase costs

People familiar with the matter also said that in the notice issued by the company, the chip manufacturing equipment manufacturers also told downstream suppliers that they can not have Chinese investors or shareholders. Industry executives say such measures could lead to higher costs because it is not easy to find non-Chinese alternatives at similar prices. In response, Colin R & D said that the company will comply with U.S. export controls on chip manufacturing supply chain companies. Applied Materials also said that the company is looking for alternative sources of parts to ensure manufacturing.

The Commerce Department issued rules last year requiring U.S. semiconductor equipment makers to obtain licenses before sharing technical details and plans with Chinese suppliers, and the equipment makers were granted temporary licenses to extend them, but those licenses are set to expire at the end of 2025. According to a document from Veeco, a major manufacturer of semiconductor process systems, the company sent a written notice to its suppliers that they must immediately stop using any new Chinese suppliers and must wean themselves off their existing suppliers by the end of 2025. Wolters Kluwer Instruments did not respond to a request for comment.

Should material, Colin low-key implementation of the United States ban