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US issues sweeping restrictions on chip sales to China
Posted on 10/8/22 at 12:06 pm
Posted on 10/8/22 at 12:06 pm
quote:
The Biden administration announced sweeping new restrictions on the sale of semiconductor chips and manufacturing equipment to China on Friday in a major effort to impair Beijing’s military and technological capabilities, according to The Wall Street Journal.
The new rules require manufacturers, like Intel and Micron, to receive a license from the Commerce Department in order to export semiconductors and chip-making equipment to Chinese companies. In addition, the administration issued several foreign direct product rules, banning international companies from exporting chips built with US technology.
The decision follows months of increased investment by the US in domestic semiconductor manufacturing. In August, President Joe Biden signed the $280 billion CHIPS and Science Act, providing $52 billion in subsidies to boost companies choosing to build chip manufacturing plants in the US.
Semiconductor chips are used in a variety of different technology products, from graphics cards and EVs to artificial intelligence projects and military equipment. The White House’s Friday move to restrict US chip sales to China is an attempt to cut off Beijing’s access to American tech before the industry has even fully matured.
Over the last few weeks, chip makers have announced multibillion-dollar investments in states like Ohio and Idaho. In September, Biden visited Ohio to celebrate the groundbreaking of Intel’s new $20 billion semiconductor plant, one of the first to make good on the new subsidy funding.
LINK
I think this a little too little too late. Intel already has fabs in China and Taiwan, as does Micron. Qualcomm and Nvidia chips have been made in Asia for decades now. They have already stolen all the IP. We are closing the barn door after the horses have already bolted.
This post was edited on 10/8/22 at 1:59 pm
7
Posted on 10/8/22 at 1:42 pm to rickgrimes
I am kind of shocked President Potato would do this to his overlords.
Posted on 10/8/22 at 4:02 pm to SG_Geaux
Just lobbing mid term Hail Mary's as of late. First the marijuana pardons (which should have been done long ago) and now this.
This post was edited on 10/8/22 at 4:52 pm
Posted on 10/8/22 at 6:59 pm to rickgrimes
Should have been done 4 years ago.
Posted on 10/8/22 at 9:14 pm to HotBoudin
quote:
Should have been done 20 years ago.
Posted on 10/8/22 at 10:56 pm to rickgrimes
One part of me likes it, the other part of me is nervous about China putting reciprocal restrictions in place. Not so much on chips specifically since most of that comes from Taiwan, but tech in general. American companies still purchase a metric shite ton of electronic subassemblies assembled in China later integrated in final assemblies here.
Posted on 10/9/22 at 9:46 am to rickgrimes
In 2017 China debuted the SUNWAY TAIHULIGHT supercomputer at the #1 spot in the TOP500 list. It was the fastest computer in the world.
It was built using Chinese processors and networking chips.
The rumor is that they now have several computers faster than the current #1 system called Frontier. The Chinese said they will not publicly announce these systems for fear of sanctions.
They haven't needed our chips in a long time. When we shipped all our chip manufacturing to China we gave them everything they needed.
It was built using Chinese processors and networking chips.
The rumor is that they now have several computers faster than the current #1 system called Frontier. The Chinese said they will not publicly announce these systems for fear of sanctions.
They haven't needed our chips in a long time. When we shipped all our chip manufacturing to China we gave them everything they needed.
Posted on 10/9/22 at 10:42 am to rickgrimes
Sounds like the Commerce department is just going to get serious kickbacks in return for controlling the number of companies allowed to sell chips to China.
Nothing will change, except the largest manufacturers will be able to name their price and the little guys will not legally be allowed to sell. China still gets the chips in the end.
Nothing will change, except the largest manufacturers will be able to name their price and the little guys will not legally be allowed to sell. China still gets the chips in the end.
Posted on 10/10/22 at 12:25 pm to rickgrimes
TSM currently pretty far ahead of anyone. We should be stealing from Taiwan if we want to compete.
Posted on 10/12/22 at 7:52 am to UltimaParadox
The swamp giving China reasons to take Taiwan by hedging their bets in case Putin pulls back and Eurowar doesn't happen as planned?
Posted on 10/12/22 at 9:29 pm to SG_Geaux
quote:
I am kind of shocked President Potato would do this to his overlords.
I have to admit that I’m amazed, too.
Posted on 10/14/22 at 5:23 pm to rickgrimes
Okay I'm legit impressed by the current administration of this is true:
LINK
quote:
THREAD: The US government's new export controls are wreaking havoc on China's chip industry.
New rules around "US persons" are driving an "industry-wide decapitation."
The following is the translation of a thread posted earlier this week by
@lidangzzz
.
"Lots of people don’t know what happened yesterday.
To put it simply, Biden has forced all Americans working in China to pick between quitting their jobs and losing American citizenship.
Every American executive and engineer working in China’s semiconductor manufacturing industry resigned yesterday, paralyzing Chinese manufacturing overnight.
One round of sanctions from Biden did more damage than all four years of performative sanctioning under Trump.
Although American semiconductor exporters had to apply for licenses during the Trump years, licenses were approved within a month.
With the new Biden sanctions, all American suppliers of IP blocks, components, and services departed overnight —— thus cutting off all service [to China].
Long story short, every advanced node semiconductor company is currently facing comprehensive supply cut-off, resignations from all American staff, and immediate operations paralysis.
LINK
Posted on 10/16/22 at 11:32 pm to Street Hawk
This dramatic action was clearly a tit for tat response to last week's Saudi oil decision.
Russia has very little bargaining power to effect the Saudi's decision. This move by Biden lends credibility to the possibility that it was really China that moved Saudi's hand. The fact that it was announced right before China's Party Congress is awfully symbolic too. (vs US midterms)
Russia has very little bargaining power to effect the Saudi's decision. This move by Biden lends credibility to the possibility that it was really China that moved Saudi's hand. The fact that it was announced right before China's Party Congress is awfully symbolic too. (vs US midterms)
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