US Export Controls Leave No Choice... "Chinese YMTC Asks American Employees to Resign"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Yangtze Memory Technologies Co. (YMTC), a leading Chinese memory semiconductor company, reportedly asked American employees who are in charge of the company's core operations to resign. This is a measure in response to the Biden administration's semiconductor export controls on China.

On the 23rd (local time), major foreign media outlets cited multiple sources familiar with internal affairs, reporting that although it is unclear how many U.S. citizens and permanent residents will leave YMTC, several personnel have already left the company. A senior engineer at YMTC said that some American employees were key personnel who provided breakthroughs in NAND flash production, but "there is no other way to respond to this (U.S. export control)."

On the 7th, the U.S. Department of Commerce announced measures to prevent China from acquiring semiconductor technology by prohibiting the export of certain semiconductor technologies and production equipment to China. In particular, U.S. companies must obtain separate approval when selling advanced semiconductor manufacturing equipment to Chinese companies producing semiconductors above a certain level. Restrictions also apply to U.S. citizens and permanent residents supporting Chinese companies, not just U.S. companies.

Previously, U.S. semiconductor manufacturing equipment companies such as Applied Materials, Lam Research, and KLA Corporation stopped selling and supporting equipment to Chinese semiconductor companies. Dutch semiconductor equipment manufacturer ASML also instructed its American employees to withdraw from work related to Chinese clients. Recently, Apple in the U.S. postponed plans to use YMTC's memory semiconductors in iPhones.

Regarding this, foreign media reported that Simon Yang, the CEO who led the business since YMTC's establishment, resigned in September due to U.S. pressure. The foreign media explained that Yang, a U.S. passport holder, stepped down from the CEO position at the end of last month and moved to the company’s vice chairman role due to U.S. regulations.

In addition to YMTC, other semiconductor companies in China are reportedly demanding resignations from or negotiating with U.S. citizens or permanent residents to find solutions.

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