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U.S. Orders Chip Equipment Companies to Halt some Shipments to China's Hua Hong

The restrictions could slow China’s advanced chip drive and may cost U.S. suppliers billions of dollars in sales, sources said.

  • Last week, the U.S. Department of Commerce ordered chip equipment companies to halt certain tool shipments to Hua Hong, China's second-largest chipmaker, according to two people familiar with the matter.
  • Restricting these shipments aims to safeguard the U.S. technological lead in advanced chips, as Hua Hong developed 7-nanometer processes with Huawei Technologies and Huali Microelectronics, the contract chipmaking business.
  • Major U.S. suppliers including Lam Research, Applied Materials, and KLA reportedly received restriction letters targeting two facilities: Shanghai-based Fab 6, which uses 28/22-nanometer technology, and the 8a site.
  • On Wednesday, Chinese foreign ministry spokesperson Lin Jian stated that China hopes the U.S. will "maintain the stability and smooth functioning of global industrial and supply chains."
  • Tension could increase ahead of President Donald Trump's scheduled May meeting with Chinese President Xi Jinping in Beijing, as the restrictions continue policies safeguarding national security.
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Department of Commerce sends chip equipment companies to stop some shipments to Hua Hong

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Reuters reported on the 28th (local time), citing multiple sources, that the United States is imposing sanctions on the Chinese foundry (semiconductor contract manufacturing) company Huahong Semiconductor. The aim is to slow down the manufacturing of artificial intelligence (AI) chips by China's second-largest foundry company by blocking the export of specific semiconductor manufacturing equipment.

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Times of India broke the news in India on Tuesday, April 28, 2026.
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