Editorial, CNBC Indonesia
Tech
Wednesday, 15/11/2023 20:10 WIB
Jakarta, CNBC Indonesia – Joe Biden’s administration issued a strict policy banning the export of components and advanced manufacturing tools for chip makers to China.
Report Reuters said that Chinese companies were apparently able to get around these regulations and buy chip-making equipment from the US.
Under the export restriction regulations issued by the Biden administration in October 2022, Chinese chip companies cannot purchase US chip manufacturing equipment to make chips with 14nm architecture or more advanced.
The ’14 nanometer’ label is what Chinese companies use as a loophole. That’s according to a 741-page document released by the US-China Economic and Security Review Commission.
“Importers often buy chip equipment with claims to produce older models of chips. Lack of strict supervision makes it difficult for authorities to verify whether the equipment purchased is not used by Chinese companies to produce advanced chips,” the report stated, quoted from ReutersWednesday (15/11/2023).
This report was issued after the Chinese giant, Huawei, released the Mate 60 Pro which is equipped with a sophisticated 7 nanometer chip and supports 5G networks.
The Huawei chip was produced with the help of semiconductor giant SMIC. For your information, Huawei and SMIC have been blacklisted by the US since 2019 and 2020.
Chinese authorities say SMIC was able to make advanced chips with tools it had before Joe Biden’s rules took effect in October 2022.
The US also asked allied countries, the Netherlands and Japan, to also impose export restrictions to China in July and September 2023.
According to documents, from January to August 2023, China imported chip manufacturing machines from the Netherlands worth US$ 3.2 billion. That figure rose 96.1% from the previous year.
In total, China imported chip manufacturing equipment worth US$ 13.8 billion during the first 8 months of 2023.
This means that China had already purchased the resources needed for chip production in the long term, before the US implemented a total block.
While developing chips with this tool, China had time to create its own chip manufacturing tools. With this tactic, China will no longer depend on the US in the future.
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(fab/fab)
2023-11-15 13:10:00
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