A major setback for them Xi Jinping administration, the US-wide export bans imposed last year halt expansion plans for top Chinese chipmakers.

What happened: The government’s ambitions to turn the country into a semiconductor powerhouse are faltering while chipmakers are struggling to source production equipment to manufacture advanced semiconductors, reported Nikkei Asia.

The engineers and technicians at the huge flagship production site of Yangtze storage technologies (YMTC) are awaiting commissioning of their second facility. It was originally supposed to start in late 2022, but sweeping curbs delayed plans.

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“Things like electrical equipment have been set up, but the installation of chip-making equipment hasn’t started yet,” said one.

The company had built a second factory in 2020 — at an estimated cost of around 100 billion yuan ($15 billion) — to triple production capacity and meet the government’s far-reaching ambitions to make China a chip-making hub.

Washington’s far-reaching, severe restrictions on the export of technology and equipment used in the manufacture of advanced semiconductors, as well as Restrictions on US Citizens Supporting Chinese ChipmakersNow she made them wait.

The Curbs have also forced YMTC to cut jobs. “Our department began laying off about 10% of its workforce in January,” said an engineer who has been with the company for about three years.

ChangXin storage technologies — DRAM chip maker — which also uses advanced technologies affected by the sanctions — faces a conflict in its plans. The company also set up a second unit, but operations remain uncertain.

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“We planned to start operations in 2023, but that won’t happen until 2024 or 2025 at the earliest,” said a CXMT engineer.

2015, President Xi announced the Made in China 2025 initiativewhich…