China's YMTC asks core US employees to leave due to chip expo

Chinese chip maker Yangtze Memory Technologies Co (YMTC) Ltd has asked its U.S. employees in core tech positions to leave.

Yangtze Memory Technologies Co. asks core U.S. employees to leave due to chip export restrictions. (Bloomberg)

Chinese chip maker Yangtze Memory Technologies Co (YMTC) Ltd has asked its U.S. employees in core tech positions to leave, as the company rushes to comply with the new U.S export restrictions, Financial Times reported on Monday.

It was unclear how many U.S. citizens and green card holders would be forced to leave YMTC, Financial Times reported, quoting four people close to the company.

The paper said several employees in China had already left the company.

China chip imports drop 12.4% year-on-year in September - govt data

China's chip imports fell 12.4 percent in September, according to official customs data published on Monday, continuing a decline amid tensions with the United States and an ongoing chip shortage.

The country imported 47.6 billion chip units during the month, compared with 54.3 billion units in September 2021, according to the data, which had been due for release earlier this month but was delayed due to the Communist Party Congress.

That maintains an ongoing downward trend for chip imports.

In the first nine months of 2021, China imported 417.1 billion units of chips, down 12.8 percent year-on-year.

Chip imports to China surged in 2021, as tensions between the U.S. and China over technology policy escalated and a global chip shortage caused many companies in China to stockpile supplies.

Separate data from the National Bureau of Statistics showed that domestic chip output in September fell 16.4% year-on-year to 26.1 billion units. In the first nine months of 2022, total output fell 10.8% to 245 billion units.

Achieving self sufficiency for China's chip industry remains a key policy priority for Beijing, especially as Washington continues to target the progress of China's semiconductor sector, with the latest being a set of sanctions announced by the Biden administration earlier this month.

The sanctions have caused major overseas-based chip manufacturing equipment companies to cease supplying key Chinese chip companies, including Yangtze memory Technologies Co (YMTC) and Semiconductor Manufacturing International Corp (SMIC), and makers of advanced artificial intelligence chips to cease supplying companies and laboratories.