U.S. Chip Makers Cut Ties with China Amid Tightened Trade Restrictions

Applied Materials and Lam Research urge suppliers to find non-Chinese alternatives to comply with new U.S. guidelines.

U.S. semiconductor companies are moving away from Chinese components following stricter government trade policies.
Applied Materials and Lam Research have instructed suppliers to avoid Chinese parts and investors to maintain vendor status.
Industry experts warn that sourcing non-Chinese components could lead to increased costs for chipmakers.
The Commerce Department now requires licenses for U.S. firms to share technical details with Chinese suppliers.
Recent U.S. regulations also limit investments in Chinese technologies, covering semiconductors, AI, and quantum computing.