US restricts Sea Turtles in chip industry

The US has extended its embargo on the supply to technology to China by restricting the involvement of individuals in the chip industry, reports the Nikkei.

As from yesterday, US citizens and permanent US residents have been blocked from supporting Chinese development and production of high-end ICs for certain applications..

Many of China’s semiconductor entrepreneurs are Chinese Americans who have U.S. citizenship, while hundreds of chip execs and engineers in the China chip industry have studied or worked in the US chip industry and hold US citizenship and have returned to work in the China chip industry.

These returnees are nicknamed Sea Turtles.

The ban took effect yesterday meaning that all Sea Turtles must cease working on these high end ICs unless or until they receive a licence.

Chinese American Sea Turtles can avoid penalties if they give up their US citizenship or residency or changing their area of work.

However, many Sea Turtles have family, assets and property in the US and it is expected that the US enforcement of the regulation could be burdensome.