Thursday, January 31st 2019
China-based DRAM Maker Fujian Jinhua Closing Shop in March Following US Trade Ban in October
Remember that story we brought you regarding the United States government, via its Department of Commerce, banning all exports from national companies to China-based Fujian Jinhua Integrated Circuits Ltd? Well, fast-forward three months, and the Financial Times is reporting, citing two sources close to the matter, that the ban has been too much for the company to take, limiting its ability to import needed parts and tools for its DRAM production. This is tough news for a company that was investing towards finishing construction of a $5.7 billion factory in China's Fujian Province.
If the Financial Times is true, this is one potential player in the DRAM market that goes out the proverbial window. The original reasons given by the Department of Commerce for the export ban referred to the company being supported by "likely U.S.-origin technology", reportedly of Micron origin. Well, now it seems as if it isn't being supported at all.
Sources:
Tom's Hardware, Financial Times
If the Financial Times is true, this is one potential player in the DRAM market that goes out the proverbial window. The original reasons given by the Department of Commerce for the export ban referred to the company being supported by "likely U.S.-origin technology", reportedly of Micron origin. Well, now it seems as if it isn't being supported at all.
22 Comments on China-based DRAM Maker Fujian Jinhua Closing Shop in March Following US Trade Ban in October
NO No you stole
we don't want Crims in our illegal cartel :)
Though not a fan of the scorched earth type trade war that's going on, we do seem to be heading off technology theft. To bad that didn't happen 20 years ago.
Fujian never got far enough along to ever be a competitor against the DRAM cartel.
Or the Chinese government decided to throw a company under the bus in the hopes that the tech news industry would throw up a "we're shocked!" cry and howl.... like you are doing.... sniff, sniff, boo hoo.
The Chinese government has had a systematic approach to pillaging, via espionage, any technology they wanted since the '70s. If that means a company, that they own, gets trashed every once in a while is an acceptable risk. So two companies belly up in 40 years of stealing? I'll take those odds any time!
There is no winning against a country that sponsors piracy.
The USA has just demonstrated that it is willing and able to destroy a foreign company that is attempting to compete with a US company in the same industry - based solely on allegations by the local company and the USA. If the USA really has evidence to prove Fujian Jinhua's wrongdoing, a simple show trial would have proved to the world that they were justified in doing what they did, and everyone would have agreed with them.
But there has been no trial and there has been no release of facts. If I was being cynical, I could hypothesise that this is because the facts don't support the punishment, and that the USA is actually using protectionist measures to unfairly favour a local company over a foreign one, while covering it up by claiming wrongdoing by the foreign company. And if that is the case, what is to stop them from doing the same to other companies in future?
Micron was a victim of IP theft...
seekingalpha.com/article/4061085-micron-technology-may-victim-ip-theft-investors-worry
www.nytimes.com/2018/06/22/technology/china-micron-chips-theft.html
www.idahostatesman.com/news/business/article188702409.html
Charged with theft in November...not long enough yet for a verdict...
www.bloomberg.com/news/articles/2018-11-01/u-s-says-china-state-owned-co-stole-micron-trade-secrets
One could argue the Trump administration was preemptive in the ban but it was a now or never situation. If Fujian was able to acquire all of the equipment they needed to create DRAM, there would be no stopping them. If the trial exonerates Fujian of all charges, then the ban would cease.
Intel previously sued Micron due to IP theft:
www.govtech.com/security/Intel-Responds-to-Attempted-Theft-of-1B-Project-by-Employee.html
Reason why Uncle Sam got involved this time is because this is an international affair as opposed to domestic.
btw, keep waiting.:p
www.bloomberg.com/news/articles/2018-11-01/u-s-says-china-state-owned-co-stole-micron-trade-secrets
We just jumped to the verdict first.