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 (NASDAQ: LRCX), Applied Materials, Inc (NASDAQ: AMAT), and KLA Corp (NASDAQ: KLAC) have suspended sales and services to semiconductor manufacturers in China.

Netherlands-based ASML Holding N.V. (NASDAQ: 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 (NASDAQ: 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

See more from Benzinga

MKS Instruments Analyst Slashes Price Target By 10% On WFE Spending Headwinds

China-Related Headwinds Force Chip Analyst To Slash Expectations on Lam Research, Applied Materials

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Click Here To Get Funded!