US Export Restrictions Target China's Semiconductor Industry
By Lauren Baxter
Published February 11, 2024
The United States has implemented a series of export restrictions designed to impede the progress of China's semiconductor industry.
Chinese Chipmakers' Response
Despite the US efforts to hinder China's technological advancement, Chinese chipmakers are anticipating the production of next-generation smartphone processors as early as this year. The Financial Times has reported that China's leading chipmaker, SMIC, has established new semiconductor production lines in Shanghai to mass produce chips designed by Huawei. SMIC intends to utilize its existing supply of US and Dutch-made equipment to manufacture five-nanometer chips.
Huawei's Technological Progress
According to sources cited in the report, Huawei is poised to upgrade its new flagship handset and data center chips with the new 5nm node. The company successfully launched its Mate 60 Pro smartphone in September 2023, equipped with high-end seven-nanometer chips.
US Export Controls
In response to China's technological advancements, the US government, under President Joe Biden, implemented comprehensive export controls in 2022 with the goal of slowing China's progress. These measures include a ban on sales to China of certain semiconductor chips made anywhere in the world with US equipment, as well as a restriction on shipments of chips for supercomputing systems and artificial intelligence.
Chinese Government's Reaction
Faced with increasing restrictions, the Chinese government has been heavily investing in the development of a self-reliant semiconductor supply chain. Beijing has criticized the export curbs imposed by the US, expressing that they violate globally recognized market rules.
Reciprocal Sanctions
In response to US actions, China has imposed its own sanctions on five American defense industry companies, citing arms sales to Taiwan and unilateral sanctions imposed by the US on Chinese entities. Despite Washington's efforts, reports suggest that Chinese companies have found ways to continue acquiring US chip-making equipment by exploiting gaps in export controls.
Conclusion
The competition and tensions between the US and China in the semiconductor industry continue to escalate, with both countries taking measures to protect their interests and exert influence. The impact of these developments on the global economy and technology landscape remains a subject of ongoing analysis and debate.
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