What about US export controls... "At least 43 Americans hold executive positions in Chinese semiconductor companies"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the Biden administration recently announced semiconductor export controls to China that restrict support by Americans to Chinese semiconductor companies, it has been revealed that there are currently more than 40 Americans holding executive positions in Chinese semiconductor firms.

On the 16th (local time), the Wall Street Journal (WSJ) reported that after investigating disclosures and official website information of 16 Chinese semiconductor companies, it was found that 43 Americans hold senior executive positions. Most of them are C-level executives such as CEOs and vice presidents.

According to the report, most of these (American) executives moved to the Chinese semiconductor industry after working for several years at American semiconductor manufacturers or semiconductor equipment companies in Silicon Valley. In particular, WSJ noted that some of them came to China through the "Thousand Talents Plan" initiated by the Chinese government in 2008 to attract high-level overseas talent.

The reason this is problematic at this point is that the U.S. Department of Commerce announced advanced technology export controls to China on the 7th. If American companies sell advanced semiconductor manufacturing equipment to Chinese companies producing semiconductors above a certain level, they must obtain separate approval. Not only American companies but also U.S. citizens and permanent residents are restricted from supporting Chinese companies.

A representative American leading a Chinese semiconductor company is Gerald Yin, founder of Chinese semiconductor equipment company Zhongwei Semiconductor (AMEC). Born in China and having earned a master's degree there, he moved to the U.S. in 1980, obtained a doctorate, and worked for 20 years in Silicon Valley at the world's largest semiconductor equipment companies such as Applied Materials and Lam Research. He then returned to China in 2004 and founded AMEC.

Currently, AMEC has six senior executives and key researchers who are U.S. citizens, and it is reported that many of AMEC's engineers also hold U.S. citizenship. AMEC recently disclosed in its annual report that it received more than $50 million (approximately 7.2 billion KRW) in subsidies from the Chinese government last year.

Additionally, Shu Qingming, Vice Chairman of Chinese memory semiconductor company Gigadevice, and Qing Taiyi, a director, hold U.S. passports. Tian Xinglong, Executive Director of Shenyang Xinyuan (Kingsemi), is confirmed to hold U.S. permanent residency.

Dane Camorro, Global Risk and Intelligence Officer at business consulting firm Control Risks, pointed out that restricting Chinese companies from acquiring American talent directly strikes at the core of China's attempt to build its technology network. He said, "Technology is nothing without people who can operate it," adding that many executives at Chinese companies will be forced to choose between U.S. citizenship or permanent residency and their jobs.

Following the U.S. export control announcement, major semiconductor equipment companies including the Netherlands' ASML have instructed their American employees to suspend communications with Chinese clients until the details are clearly understood.

Meanwhile, Yangtze Memory Technologies (YMTC), China's largest memory semiconductor company targeted by U.S. export regulations, is reportedly offering various benefits to recruit personnel recently.

This content was produced with the assistance of AI translation services.