On October 10, the U.S. semiconductor sector continued its decline from last Friday. Today, Taiwan Semiconductor's stock also plunged by 8.33%. This is not only related to the semiconductor industry itself but also linked to the recent U.S. sanctions on China's semiconductor industry. I have taken the time to summarize the entire event and provided an analysis for your reference.
I. Event Overview
On October 7, 2022, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced new export control regulations targeting China, focusing on advanced chips and chip manufacturing equipment, while updating the Unverified List control measures. This signifies another escalation of U.S. sanctions against China's semiconductor industry. (For details, see the attached document of the regulation announcement.)
According to the statement, in order to prevent China from using advanced chips produced by U.S. companies or chips manufactured based on U.S. technology, software, and equipment for military purposes, the U.S. Department of Commerce has tightened export controls on related products to China. The statement mainly includes two parts:First, more comprehensive restrictions related to advanced computing and semiconductor manufacturing; second, updates to the Unverified List control measures. At the same time, the U.S. Department of Commerce added 31 Chinese companies tothe Unverified List (explained and defined later), and removed 9 Chinese companies.
(1) More comprehensive restrictions related to advanced computing and semiconductor manufacturing
According to the statement of the new regulations, it specifically includes:
1. Certain high-end and high-performance computing chips and computing devices containing these chips...