US stops exports of tools to China’s number two chip maker — Hua Hong and Huali Microelectronics reportedly on the cusp of starting a 7-nm fab in Shanghai

The U.S. Commerce Department has reportedly told several equipment makers to halt certain tool shipments to Hua Hong.

The restriction comes as Hua Hong’s Huali Microelectronics subsidiary starts building a 7-nm production line in Shanghai.

The move is part of broader U.S. efforts to curb China’s access to advanced chipmaking technology.

It could slow China’s push into cutting-edge semiconductors while hurting major U.S. suppliers’ sales and worsening trade tensions.