US prohibits Samsung from supplying chips to companies in China

Earlier this month, the US reportedly instructed TSMC, the largest contract chip maker in the world, to stop supplying 7nm and below chips to companies in China. After the orders, the company reportedly canceled shipments of its AI chips to the Chinese brands. Now, the US has allegedly prohibited Samsung from supplying certain chips to companies in China. This comes on the heels of the ongoing semiconductor war, in which, the US is cutting the supply of high-end chips to Chinese companies.
The US has ordered Samsung to stop supplying chips to companies in China
According to reports, the US regulatory authorities have barred Samsung from supplying 7nm chips or below to the companies in China. The Economic Daily News reports that Samsung has already emailed its customers in China regarding the latest ban from the US. This comes after TSMC delivered a similar email to its customers in China. TSMC is the world’s biggest supplier of chips, so the US order has brought a lot of losses for it.
The United States is working to prevent China from obtaining advanced semiconductor chips. So after TSMC, Samsung is no longer allowed to deliver chips based on 7nm and subsequent nodes to China. The country has used trade controls to prevent companies from utilizing US equipment.
The decision will hurt Samsung’s foundry division even more, which is already bleeding cash
Samsung’s chip foundry division is already bleeding cash or facing problems lately. The brand has already shut 50% of its production capacity because of a lack of orders. So, the latest decision from the US will hurt Samsung’s semiconductor unit even more. The company will lose vital business, thanks to the latest ban from the US from supplying chips to China.
Intel could also receive a similar ban after TSMC and Samsung. That said, the US continues to cut China’s access to advanced semiconductor chips to be on top of the market.