According to The Star Daily on December 3 (reporters Guo Hui and Chen Junqing), on December 2 local time in the usa, the U.S. Department of Commerce issued a new round of export control measures on semiconductors to china, adding about 140 Chinese entities including naura technology group, huada jiutian, wingtech technology, tuojing technology, and jiangsu nata opto-electronic material to the export control entity list.

Regarding the impact of this export control measure, many A-share companies responded to market concerns today (December 3).

Kingsemi co., ltd.'s securities department staff stated that its internal executives are still assessing the subsequent impacts, "The company currently has domestic solutions for core components, and the proportion of foreign customers is relatively small." In response to the risks of being included in the "entity list," the company is actively responding. The impact of being placed on the entity list by the usa is generally manageable. Currently, the company's operation and financial situation are normal, and all business sectors are progressing steadily. The company will seize development opportunities and accelerate the localization process of the entire EDA tool flow.

An insider from naura technology group told The Star Daily that the (control measures) have little impact on the company, "We may issue an announcement later." Naura technology group stated this morning that the company has mainly focused on controllable supply chains and development planning in recent years. "Currently, 90% of the company's revenue comes from the domestic market, and less than 10% from overseas markets, so the expected impact is minimal."

A relevant person from beijing huafeng test & control technology's investor relations department stated that there is no impact on the company's business, and its procurement has basically achieved localization.

Tuo Jing technology stated that they expect a small impact on the company's operation. "The company's main sales area is domestic, and for key components and materials, the company has multiple supply sources and has a certain amount of stock to ensure supply chain stability."

Jiangsu nata opto-electronic material responded to investors' questions today (December 3), stating that the export control has no substantive impact on the company. There may be some restrictions on the procurement of a few components, but the company already has stock and will pursue localization development, with most raw materials currently supplied domestically.

Wingtech Technology responded to a reporter from the Star Daily, stating that given the short time since the release of the list, the company has conducted a preliminary assessment based on existing information. After initial evaluations by the company's legal team and third-party lawyers, it was determined that the restrictions on general entity lists are relatively limited, and sales of products and provision of services to customers will not be directly restricted by the list. "Moving forward, the company will continue to monitor and assess the relevant impacts and maintain proactive communication with suppliers and customers."

It is worth noting that the businesses of the aforementioned companies involve key processes in chip manufacturing equipment and components such as etching, thin film deposition, CMP, cleaning, and measurement.

"This round of sanctions has extended to the components segment, and the granularity is very fine, indicating that they are leaving no stone unturned," said Bu Rixin, a partner at Chuangdao Investment Consulting, in an interview with the Star Daily. He stated that core chip design companies have already been restricted in previous rounds; this round of restrictions can be seen as a comprehensive upgrade, restricting every segment of the industry chain, with the ultimate aim of limiting the development of the industry in China.

"This requires domestic semiconductor industry chain companies, especially the main enterprises downstream, to pay more attention to domestic supply chain security, and not to sacrifice upstream suppliers' survival and development space for short-term profits; we should nurture and support them, and cooperate for mutual benefit and win-win results," said Bu Rixin.

The list now includes several non-listed companies in the Fab sector.

A reporter from the Star Daily noted that in addition to the companies already listed on the A-share market, many other tech companies that have not yet gone public have also been included in the new round of export control entity lists, such as Pengxinxu, Shengweixu, Qingdao Xin'en, Wuhan Xinxin, and Dongfang Crystal Source. These companies are involved in core processes of wafer manufacturing.

"In recent years, the export controls from the usa have become a norm and are no longer new, but the fact that our company has been listed is indeed earlier than we anticipated, especially since the company has not yet entered the上市 stage," said a person in charge of a newly listed company on December 3rd, who indicated that many clients had inquired about the situation, creating some difficulties for the company and its partners. "But the situation has occurred, and since we are still in the race, we are somewhat prepared and believe the difficulties can be resolved."

"The frequency of list releases indicates that the usa is intensifying efforts to limit the development of China's semiconductor industry," Bu Rixin stated, adding that the market's reaction to such behavior has become increasingly calm, and the industry chain should continue to perform their respective businesses and make preparations in advance for possible challenges.

According to statistics from the Star Daily reporter, in recent years, the USA has used export controls as a tool for industrial suppression, placing numerous Chinese companies on the "entity list." As of April 2024, the BIS has issued the "entity list" for China a total of 37 times, with 12 of those occurring in just 2023.

Industry insiders have indicated that past cases demonstrate that the impact of the entity list on relevant companies will diminish marginally. Furthermore, being placed on the entity list does not mean permanent prohibition by the USA; for example, companies like ZTE and Yantai Jereh Oilfield Services Group have successfully sought removal from the entity list through legal means and other methods.

Citic sec research reports believe that the USA's Department of Commerce updated the semiconductor export control policy and entity list on December 2, 2024, primarily targeting mainland China's semiconductor enterprises. This round of sanctions continues to adopt the "small courtyard, high walls" strategy centered around advanced processes, intended to hinder China's advanced semiconductor development. The market has already anticipated this, and since relevant companies have prepared in advance, "the short-term actual impact is limited; in the long term, it is necessary to abandon illusions, strive for self-reliance, and it is expected to further accelerate the domesticization process across the entire industry chain."