[News] Micron Reportedly Urges Tighter U.S. Chip Equipment Curbs on China; Toolmakers Seek Relief

Micron is reportedly urging the U.S. government to tighten restrictions on chipmaking equipment sales to China. According to Reuters, sources say the company has been a key force pushing Congress to advance legislation that would impose new export controls on the tools used by its Chinese rivals to manufacture chips.

The company has also told U.S. lawmakers that Washington needs to step up efforts to curb China’s progress in the memory sector, arguing that stronger action is necessary to prevent China from gaining dominance in memory chip manufacturing, Reuters notes.

This push comes as Micron navigates intensifying competitive pressure. Samsung Electronics and SK Hynix continue to dominate the global memory market, while Micron ranks as the No. 3 supplier and the only major U.S.-based player. At the same time, Chinese competitors are rapidly gaining ground, the report states.

If the regulatory bill passes the U.S. Congress and takes effect, and China’s push to expand its memory semiconductor production is curbed, Business Post indicates that Samsung Electronics and SK Hynix are likely to benefit more than Micron, given their larger market shares.

However, Business Post also notes that because both Korean companies operate memory production facilities in China, they could face potential losses depending on how the semiconductor equipment export regulations are ultimately structured and enforced.

Equipment Makers Push Back on Export Control Impact

Meanwhile, other industry players are lobbying on the bill from a different perspective, according to sources cited by Reuters. These include Tokyo Electron and U.S. toolmakers Lam Research, Applied Materials, and KLA, which have seen sales impacted by export controls.

Analysts cited by Business Post say these companies are actively exploring ways to mitigate the impact of the regulations, given the significant share of their revenue derived from China.

A U.S. House of Representatives panel on Wednesday voted to advance the “MATCH Act,” a bill aimed at closing loopholes in restrictions on chipmaking equipment, Reuters notes. The measure targets major Chinese memory manufacturers as well as the country’s largest foundry, SMIC.

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(Photo credit: Micron)