WASHINGTON -The chair of the U.S. House of Representatives' committee on China has called for the U.S. Commerce Department to impose trade restrictions on Changxin Memory Technologies (CXMT), a Chinese memory chip manufacturer. This request comes in response to China's recent ban on the sale of certain chips by Micron Technology Inc., a U.S.-based company. The trade dispute between the United States and China has been escalating, with China's cyberspace regulator implementing restrictions against Micron, drawing strong criticism from influential lawmakers and the White House.

White House press secretary Karine Jean-Pierre stated to reporters on Tuesday that the Chinese announcement regarding Micron was not grounded in factual information. The White House further mentioned that the U.S. Commerce Department is actively involved in direct discussions with China regarding Micron, which is a crucial manufacturer of memory chips utilized in various products ranging from cell phones to data center servers.

Senate Majority Leader Chuck Schumer, who leads the Democratic Party in the Senate, also confirmed on Tuesday that he is engaging in conversations with the wider business community and allies to address the matter.

The Chinese Embassy in Washington did not provide an immediate response when requested for comment. Additionally, there was no immediate response from a representative of CXMT regarding the matter. A spokesperson for the U.S. Commerce Department declined to comment on the issue.

Representative Mike Gallagher, an influential lawmaker leading a select committee on China, is currently the only legislator calling for retaliatory measures. He emphasized the need for the United States to convey a clear message to the People's Republic of China (PRC) that economic coercion against American companies or allies will not be tolerated. Gallagher stated that the Commerce Department should swiftly include ChangXin Memory Technologies on the entity list, ensuring that no U.S. technology, regardless of specifications, is supplied to CXMT, YMTC, or other Chinese firms operating in this industry.

As the leading producer of DRAM memory chips in China, CXMT is well-positioned to capitalize on any potential restriction of Micron's access to China's vast chip market, making it the primary domestic beneficiary in such a scenario.

YMTC, also known as Yangtze Memory Technologies Corp, was added to the entity list in December 2022.

Representative Gallagher emphasized that the U.S. Commerce Department must ensure that U.S. export licenses granted to foreign semiconductor memory firms operating in China are not used to fill the gap left by Micron. He also urged South Korean allies, such as Samsung Electronics Co Ltd and SK Hynix, which have memory chip factories in China, to take measures to prevent such backfilling.

At present, Samsung and SK Hynix have not responded to requests for comment.

Industry analysts note that CXMT's chips are considered to be two to three generations behind industry leaders such as Micron, Samsung, and SK Hynix.

Gallagher's call comes shortly after U.S. manufacturers of chip manufacturing equipment received a clarification from U.S. export control authorities, allowing them to ship more tools to China than initially anticipated. This clarification, particularly related to the measurement of memory chip features for the application of export control rules, could result in significant additional sales from China for companies like Lam Research Corp, a leading tool maker for memory chip manufacturing.

The measurement of memory chips can vary based on the tools, materials, and design used, leading to debates among chip makers and buyers, according to Dan Hutcheson, vice chair of TechInsights Inc, a semiconductor industry research firm.