ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

U.S. sanctions derail China chipmakers' expansion plans

Yangtze Memory and ChangXin forced to delay new factories and lay off staff

Yangtze Memory Technologies Corp. (YMTC) has faced delays over constructing a second plant in Hubei province, China. (Photo by Shunsuke Tabeta)

WUHAN/HEFEI, China -- Sweeping export bans imposed by the U.S. last fall have held up plans by major Chinese chipmakers to expand operations, dealing a setback to the government's ambitions to make the country a semiconductor powerhouse.

Uncertainty was the prevailing mood during a visit to the massive flagship production site of Yangtze Memory Technologies, about 40 kilometers east of central Wuhan. Both YMTC engineers and technicians at the site to deliver manufacturing equipment had no idea when its second plant, originally slated to start up in late 2022, would actually come online.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more