# The U.S. Department of Commerce last week ordered multiple chip equipment companies to halt certain tool shipments to China's second-largest chipmaker, Hua Hong.

*semiconductor · news · 2026-04-28 · The Economic Times*

## Key points

- The U.S. Commerce Department ordered chip tool makers to halt shipments to Hua Hong Group.
- The restrictions specifically target Hua Hong's Fab 6 and another facility believed under construction.
- Huawei is planning to shift part of its AI chip production from SMIC to Hua Hong.
- Huali Microelectronics began 7-nanometer chip development at Hua Hong Fab 6 last year with Huawei support.
- The Commerce Department used 'is-informed' letters to quickly impose these new licensing requirements.

**Companies:** Lam Research, Applied Materials, KLA
**Countries:** United States, China

[Read the full story on The Economic Times](https://economictimes.indiatimes.com/markets/us-stocks/news/us-stocks-today-us-orders-multiple-chip-equipment-companies-to-halt-some-shipments-to-chinas-no-2-chipmaker-hua-hong/articleshow/130587859.cms)

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