Washington: The United States announced a new semiconductor export control package aimed at China on Monday, imposing restrictions on high-end chips for artificial intelligence (AI). These measures are anticipated to impact the South Korean industry significantly. According to Yonhap News Agency, the Commerce Department's Bureau of Industry and Security (BIS) released the package on the Federal Register, detailing restrictions on high bandwidth memory (HBM) chips. The global HBM market leaders include two South Korean companies, Samsung Electronics Co. and SK hynix, alongside Micron Technology. This initiative aligns with Washington's broader efforts to restrict China's access to critical technologies due to national security concerns. Secretary of Commerce Gina Raimondo stated, "This action is the culmination of the Biden-Harris Administration's targeted approach, in concert with our allies and partners, to impair the PRC's ability to indigenize the production of advanced technologies that pose a risk to o ur national security." The restrictions, effective December 31, focus on chips with a memory bandwidth density exceeding 2 gigabytes per second per square millimeter. The BIS emphasized that these curbs are crucial for AI applications, potentially enabling advanced military and intelligence operations, developing weapons of mass destruction, supporting offensive cyber activities, and facilitating mass surveillance for human rights abuses. Additionally, the Commerce Department announced controls on 24 semiconductor manufacturing equipment types, three software tools for semiconductor development or production, and added 140 entities linked to China's military modernization to its "Entity List." Among these entities, two Korea-based companies, ACM Research Korea Co. and Empyrean Korea, were included. In response, China's foreign ministry vowed to implement "resolute measures" against the new export controls, criticizing the U.S. for abusing export controls and disrupting international economic and trade order . Lin Jian, the ministry's spokesperson, warned that such actions could destabilize global industrial and supply chains, ultimately harming international interests.