Jeffrey Kessler works for the Commerce Department and wants to stop American companies from selling chip equipment to China. He told Samsung, TSMC and SK Hynix that he might cancel their special permits this week. These three companies run factories in China and have been able to buy American machines without extra government paperwork. Kessler thinks the current system helps China advance its technology development. He spoke about his concerns at a House hearing earlier this month.
The equipment includes etching and deposition machines that help make computer chips. Companies like Lam Research and KLA Corp make these tools for semiconductor production. China has been growing its local chip industry as American restrictions increase. Chinese equipment makers saw their sales jump 45 percent last year as local manufacturers expanded operations.
Kessler wants to use these restrictions as bargaining chips against China's rare earth metal policies. China requires export licenses for these materials that expire after six months. President Trump demands that China supply rare earth materials upfront as part of any trade deal. Government officials worry that blocking equipment sales might just make China build more of its own tools.
A White House official said they have not decided to cancel the waivers yet. Removing these permits could hurt relationships with South Korea and Taiwan. The official noted that such moves might also make trade talks with China more difficult. Kessler believes America needs stronger partnerships with allies to prevent adversaries from gaining advanced technology.
The equipment includes etching and deposition machines that help make computer chips. Companies like Lam Research and KLA Corp make these tools for semiconductor production. China has been growing its local chip industry as American restrictions increase. Chinese equipment makers saw their sales jump 45 percent last year as local manufacturers expanded operations.
Kessler wants to use these restrictions as bargaining chips against China's rare earth metal policies. China requires export licenses for these materials that expire after six months. President Trump demands that China supply rare earth materials upfront as part of any trade deal. Government officials worry that blocking equipment sales might just make China build more of its own tools.
A White House official said they have not decided to cancel the waivers yet. Removing these permits could hurt relationships with South Korea and Taiwan. The official noted that such moves might also make trade talks with China more difficult. Kessler believes America needs stronger partnerships with allies to prevent adversaries from gaining advanced technology.
