More Pressure on Supply Chains

Recent developments indicate that Lam Research and Applied Materials, leading U.S. semiconductor equipment manufacturers, are adjusting their supply chains to comply with new U.S. government mandates aimed at reducing reliance on Chinese components. Both companies have instructed their suppliers to source non-Chinese alternatives for specific components, even extending this requirement to suppliers with Chinese investors or shareholders. https://www.benzinga.com/government/24/11/41726213/applied-materials-and-lam-research-shift-supply-chains-away-from-china-to-meet-new-us-guidelines

This strategic shift is part of a broader effort by the U.S. semiconductor industry to exclude Chinese firms from its supply chains, aligning with Washington’s directives to limit China’s involvement in critical next-generation technologies. While this move aims to enhance national security, industry experts caution that transitioning to non-Chinese suppliers may increase costs due to limited or more expensive alternatives. https://www.benzinga.com/government/24/11/41726213/applied-materials-and-lam-research-shift-supply-chains-away-from-china-to-meet-new-us-guidelines

Additionally, reports suggest that Lam Research and Applied Materials are actively moving to cut China from their supply chains, reflecting the industry’s response to the tightening of U.S. trade policies concerning China. https://www.wsj.com/tech/u-s-chip-toolmakers-move-to-cut-china-from-supply-chains-6ad44c98

These actions underscore the semiconductor industry’s efforts to navigate the complex landscape of international trade regulations and supply chain dependencies.