Monday, December 2nd 2024
U.S. Unveils Massive Export Restrictions on China's Chip Industry Targeting 140 Firms
The Biden administration is rolling out a third major export control package aimed at China's semiconductor industry, as per a report from Reuters. Estimated to affect 140 companies, including China's chip equipment maker Naura Technology Group, Piotek, and Huawei Technologies, the effort aims to limit China's access to advanced chip making technology. In particular, technology that could be used in military products and artificial intelligence. Important sanctions include export controls to specific chip equipment manufacturers, blocking the delivery of high-performance memory chips and the addition of several semiconductor investment companies to the list of export-restricted entities.
The package expands U.S. regulatory authority through foreign direct product rules. It regulates chip manufacturing equipment manufactured around the world with U.S. technology, Japan and the Netherlands are exempt. However, the rules could have an impact on manufacturers outside U.S. such as those based in Israel, Malaysia, Singapore, South Korea, Taiwan and non-U.S. firms (i.e. ASML) due to the complexity of the technological and supply chain. This continues the Biden administration's strategy to limit China's semiconductor capabilities and comes just weeks before the Trump administration made changes. When asked about US new restrictions Chinese Foreign Ministry spokesperson Lin Jian said at a regular press conference on Monday that such behavior undermines the international economic and trade system, and disrupts global supply chains. China will take measures to protect companies' rights and interests.
Among the measures are limits on high-bandwidth memory (HBM) shipments. The latest round of regulations will limit memory used in AI chips compliant with "HBM 2" and more advanced versions. Even if Micron in the US and South Korean memory giants Samsung and SK hynix are all manufacturing HBM products, reports indicate that Samsung will be the most affected. According to sources cited by Reuters, China's chip demand is focused primarily on the HBM2E, which is two generations after the current state-of-the-art HBM3e. Moreover, for the first time, two chip investment companies have been included on the Entity List, Chinese private equity firm Wise Road Capital and technology company Wingtech Technology.
Source:
Reuters
The package expands U.S. regulatory authority through foreign direct product rules. It regulates chip manufacturing equipment manufactured around the world with U.S. technology, Japan and the Netherlands are exempt. However, the rules could have an impact on manufacturers outside U.S. such as those based in Israel, Malaysia, Singapore, South Korea, Taiwan and non-U.S. firms (i.e. ASML) due to the complexity of the technological and supply chain. This continues the Biden administration's strategy to limit China's semiconductor capabilities and comes just weeks before the Trump administration made changes. When asked about US new restrictions Chinese Foreign Ministry spokesperson Lin Jian said at a regular press conference on Monday that such behavior undermines the international economic and trade system, and disrupts global supply chains. China will take measures to protect companies' rights and interests.
19 Comments on U.S. Unveils Massive Export Restrictions on China's Chip Industry Targeting 140 Firms
This just seems like Joey boi steadily trying to make some more last minute/lame-duck moves to cement his name into some more history books :(
Pardons.
Golden parachutes.
Deportations.
Vengeful tariffs.
Wars.
Please just die already so the rest of the world can move on.
This is just a minor inconvenience for them, will not work even as a delay.
I wonder how much this BS has stifled innovation already.
huawei phones were so much value for the money
People don't understand these measures aren't aim to STOP them but to SLOW them down.
So nobody is innocent here and only humanity loses because of the petty needs for power of a few people.
Does not matter whether you ship to Singapore, Vietnam, Taiwan, Indonesia, India or Philipines or wherever, it will easily find it's way to China. Because money makes the world go round and most of the people living in aforementioned countries don't give a f**k about US restrictions.
Though I don't like China, these restrictions might easily become a reason for retaliation one day. On the other hand these restrictions are pathetic, since most of things (especially electronics) sold in US are at least partly made in China.
(Basically anything related to power regulation in electronics is made in China.) China does not have to retaliate in military way, rather impose restrictions on exported goods to US.
For how long will China tolerate Trump's upcoming administration and another related restrictions, remains unknown. I'm not going to argue that China is a threat, I just think that those restrictions are not only useless long-term, but also dangerous. Who is the real threat is thing of opinion, truth lies always somewhere in the middle.
We've got issues :) I've seen people say in this topic this has to do with the age of a certain generation. But they forget that the youngsters too, grow old someday, and they'll be in the exact same place doing the exact same things. We've written a history full of repeat offenses. Why would it be different now? Already you can see the younger generations are in fact just as easily manipulated, if not easier, and are also keen to find opposition, even just for entertainment. I'm not seeing a promising new world on the horizon honestly. The younger generations don't consume less, either, they're fed and feeding on hypercapitalism just the same, and social media is even teaching them how that world works: be a brand, sell yourself, influence others.
- China will get what they want, later and more expensive, but they will get it.
- China will also accelerate their efforts to develop their own advanced chip manufacturer technologies, which will give them independency and then the US won't be able to do anything.
The problem here is the US is strengthening itself as a nontrusted partner, if US interests are against any other country's own interests, the US will try to force any other countries against their own interests, and this is a trust issue.People really so hard up for another war.
War is always about money, influence and power. Current world situation sometimes reminds me of cold war. Everyone is gearing up weapons, everyone does spying activities, threatens others with power and nuclear weapons. States on the west hate states on the east and vice-versa. While I hope for the best and want to live in peace, everything points to a fact that next war is inevitable, because, as you said, people just can't get along. People don't understand what they currently have and obviously that's not enough. It is never enough. Well, sometimes you must fall in order to understand what you had and what is now lost. People are unteachable, in the long run they tend to do exactly same mistakes over and over again. May there is always peace all over the world.