US Suppliers Stop Operations at Top Chinese Memory Chip Maker

BEIJING–U.S. chip equipment suppliers are laying off employees based in China’s top memory chip maker and pausing business activities there, according to people familiar with the matter, as they rush to assess the impact of Commerce Department restrictions on semiconductor exports.

State-owned Yangtze Memory Technologies Co. is facing a freeze in support from key suppliers, including CLOTHES and Lamb Research said the people. The suspensions follow last week’s sweeping curbs imposed by the United States on China’s chip sector, ostensibly to prevent American technology from furthering China̵[ads1]7;s military power, although the impact could reach further into the industry.