Two execs of China-based chipmaking tools producer resign to meet U.S. requirements

Two executives at Advanced Micro-Fabrication Equipment (AMEC) have stepped down from key technical roles due to U.S. export rules that prohibit U.S. citizens from aiding China in advancing its semiconductor industry, reports South China Morning Post. The company assures its investors that its operational strength and research capabilities remain intact despite changes in the executive team.

Ni Tuqiang, vice general manager at AMEC, and Yang Wei, core technical staff, recently resigned from their positions at the company ‘for personal reasons.’ Both execs have U.S. citizenship. Yet, after their resignations, Ni Tuqiang and Yang Wei will continue to serve AMEC, presumably in different roles, the company said in a statement. AMEC did not reveal what new positions the two would occupy. 

It is noteworthy that Gerald Zheyao Yin (Yin Zheyao), AMEC’s founder, chairman, and CEO, who used to work as a process engineer at Intel as well as held various positions at Applied Materials and Lam Research, remains in his position at AMEC despite holding the U.S. citizenship. Recently, he expressed confidence that China was on track to achieve ‘basic’ self-sufficiency with wafer fab equipment.

AMEC stressed that the departure of these two executives will not hinder its ability to innovate or remain competitive. The company’s core technical team now consists of seven members, down from nine, but includes key figures like Gerald Yin Zhiyao, reports SCMP.

In October 2022, the U.S. introduced a rule restricting ‘the ability of U.S. persons to support the development, or production, of ICs at certain PRC-located semiconductor fabrication facilities without a license.’  The rule specifies thresholds for these semiconductors: FinFET or GAAFET-based logic produced on 14nm/16nm-class nodes or below, DRAM chips made on a node of 18nm half-pitch or less, and 3D NAND ICs with 128 layers or more.

AMEC does not make chips but specializes in etching and chemical vapor deposition tools, which essentially means it supports the development and production of advanced chips in China. Naura, an AMEC rival, asked engineers holding U.S. citizenship to suspend their work to comply with the requirements of U.S. export regulations. It is unclear whether AMEC did the same or its employees have managed to get a license from the U.S. government, which has now expired, but they have to resign from their positions now so as not to get into trouble with the U.S. government.

 To accelerate its semiconductor sector, China has recruited talent from the U.S., South Korea, and Taiwan through government-controlled funds and companies. This has helped create leading firms like AMEC, Naura, SMIC, and YMTC. Foreign professionals often hold senior management and engineering roles at Chinese companies, leveraging their expertise to expedite the development of these firms.

As a result, restrictions on U.S. citizens, residents, and green card holders from working in Chinese semiconductor and high-tech companies could severely impact these businesses in the mid-term. In the long term, China will develop its own talent, so the move is designed to ensure that U.S. citizens or green card holders with appropriate experience in the semiconductor industry do not share their experience or know-how with Chinese entities.