Is China’s chip producer YMTC a direct threat to the U.S.?

Washington, 10/25/2022

In order to prevent Chinese companies from hiring top American chip and hardware executives who then help ensure that the products they manufacture serve to modernize the Chinese military, the Biden administration has asked these individuals, as well as green card holders, to resign or renounce their American citizenship.

As evidence that this decision is working, the case of the former CEO of the

Chinese chip manufacturer Yangtze Memory Technologies Corp (YMTC). CEO Simon Yang resigned from his post after the U.S. government placed YMTC on the U.S. Bureau of Industry and Security’s Unified List.

YMTC is China’s largest manufacturer of memory chips. To be removed from this list, the chipmaker must provide more details about its end customers and products. Otherwise, YMTC could be placed on the stricter „Entity List,“ which prohibits U.S. companies from supplying the company.

In addition, U.S. citizens must obtain special permission from the Department of Commerce if they want to support Chinese technology companies.

The U.S. government expects this decision to negatively impact China’s ability to hire top American chip and hardware industry talent.