Chinese Top Chipmaker Retaliates By Firing US Employees In Core Tech, Former CEO's Position Remain Undecided

  • Chinese chipmaker Yangtze Memory Technologies Corp ousted American employees in core tech positions following the U.S. embargo on China. 
  • Several U.S. citizens and green card holders in China had already left the memory chip producer, the Financial Times reported.
  • Some Americans reportedly were key to YMTC's Nand memory chip production breakthroughs. 
  • Also Read: Taiwan Semiconductor Bears The Brunt Of US China Tensions, Slashes 2022 Budget By 10%
  • Leading U.S. chip equipment suppliers Lam Research Corp LRCXApplied Materials, Inc AMAT, and KLA Corp KLAC have suspended sales and services to semiconductor manufacturers in China. 
  • Netherlands-based ASML Holding N.V. ASML urged its U.S. staff to stop serving all Chinese customers while it assessed the sanctions
  • YMTC's longstanding CEO Simon Yang, a U.S. passport holder, stepped down ahead of the sanctions reportedly triggered by Washington's increasing pressure on the company. 
  • Yang transitioned from the Chief role in late September to Deputy Chair. His current role in the company remained undecided.
  • YMTC was on the verge of settling a spot for its semiconductors in Apple Inc's AAPL iPhone this summer until the sanctions kicked in.
  • YMTC reportedly negotiated the exit of several Americans unwilling to give up their U.S. passports.
  • Chinese semiconductor companies focused on not only 'US-free' manufacturing lines but also de-Americanise the teams," as they already struggled to find experienced staff.
  • Corporate records in China show Americans dot the top ranks of leading Chinese semiconductor manufacturers and suppliers.
  • Photo by mohamed hassan via Pxhere
Market News and Data brought to you by Benzinga APIs
Posted In: GovernmentNewsRegulationsTechMediaBriefsInformation TechnologySemiconductor Equipment
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!