Chinese chip maker fires all American workers: Report

A Chinese chipmaker has asked all its American employees in key technology positions to leave, according to a new report, as it struggles to comply with new US export controls.

Yangtze Memory Technologies Co. (YMTC)’s move follows Washington’s decision to halt plans to use Apple’s memory chips after tightening export controls.

Semiconductor microcircuits

Semiconductor chips appear on a computer circuit board.

A person familiar with the matter told The Financial Times that asking the employees to resign was “the right move for the company and at the personal risk of the employees.”

It is unclear how many US citizens and green card holders will be forced to leave. People close to the company told The Times that several employees had left the country.

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Two Chinese spies have been indicted on charges of obstructing the US investigation into HUAWEI.

The U.S. Commerce Department said earlier this month it would tighten export controls to limit China’s ability to obtain advanced computing chips, develop and maintain supercomputers and make advanced semiconductors.

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The department said its renewed export controls target these areas because China can use chips, supercomputers and semiconductors to build advanced military systems, including weapons of mass destruction, abuse human rights and improve the speed and accuracy of military decision-making. , planning and logistics.

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The Commerce Department, which consulted with close allies and partners on surveillance efforts, said the updates are part of an ongoing effort to protect U.S. national security and foreign policy interests.

“The threat environment is constantly changing, and we are updating our policy today to ensure that we address the challenges posed by (China) while continuing to share information and coordinate with allies and partners,” said the Under Secretary of Commerce for Industry and Security. Alan Estevez said in a statement.

Tensions are rising between the US and China over technology and security. Last month, the Chinese government called on Washington to lift restrictions on technology exports after California chip designer Nvidia said new products were delayed and some work could be moved out of China.

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Washington has stepped up controls and lobbied its allies to limit China’s access to its most advanced chips and equipment. China is investing heavily in developing its emerging manufacturers, but so far it can’t make the high-quality chips used in the most advanced smartphones and other devices.

The Associated Press contributed to this report.

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