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
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10 Comments on U.S. Unveils Massive Export Restrictions on China's Chip Industry Targeting 140 Firms

#1
bonehead123
Doesn't really matter, since anything they can't legally import, they just buy on the black market, or flat out steal and/or reverse-engineer anyways....

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 :(
Posted on Reply
#2
damric
Symptoms that the old cronies are sick and near the end:

Pardons.

Golden parachutes.

Deportations.

Vengeful tariffs.

Wars.




Please just die already so the rest of the world can move on.
Posted on Reply
#3
R-T-B
bonehead123Doesn't really matter, since anything they can't legally import, they just buy on the black market, or flat out steal and/or reverse-engineer anyways....
That's more expensive and puts them at a disadvantage, which is the whole point.
damricPlease just die already so the rest of the world can move on.
It's going to get far worse before it gets better. But can't talk about that.
Posted on Reply
#4
PSYCHOPATHiO
damricSymptoms that the old cronies are sick and near the end:

Pardons.

Golden parachutes.

Deportations.

Vengeful tariffs.

Wars.




Please just die already so the rest of the world can move on.
so true
Posted on Reply
#5
Prima.Vera
The Chinese will just create phantom black companies in some East Asian countries, and import their stuff from there. The price is really not that different, considering they own those...
This is just a minor inconvenience for them, will not work even as a delay.
Posted on Reply
#6
Nater
Prima.VeraThe Chinese will just create phantom black companies in some East Asian countries, and import their stuff from there. The price is really not that different, considering they own those...
This is just a minor inconvenience for them, will not work even as a delay.
But you'll find out who your friends are. Lines in the sand.
Posted on Reply
#7
evernessince
bonehead123Doesn't really matter, since anything they can't legally import, they just buy on the black market, or flat out steal and/or reverse-engineer anyways....

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 :(
Sanctions and export restrictions operate on the deterrent principle, just like the vast majority of laws. You seem to be implying that because it doesn't stop everything it servers no purpose but this is entirely misses their point in the first place and completely ignores their actual effectiveness (as in this case, the amount of high-tech chips China is getting it's hands on and the cost it's paying to do so as compared to prior). Just because people are finding a way around a given restriction doesn't mean it isn't effective, this is a incredibly black and white take that doesn't reflect in reality. No law has a 100% deterance rate.
Posted on Reply
#8
damric
These trade wars will only cause more hyperinflation. No one has benefitted thus far, so why would it work now?
Posted on Reply
#9
kondamin
damricThese trade wars will only cause more hyperinflation. No one has benefitted thus far, so why would it work now?
Governments with big debts and those with a lot of assets benefit from high inflation.


I wonder how much this BS has stifled innovation already.
huawei phones were so much value for the money
Posted on Reply
#10
Event Horizon
Nobody is going to reverse these regardless of who runs the show.
Posted on Reply
Dec 2nd, 2024 16:09 EST change timezone

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