China is now threatened by further restrictions on semiconductor exports from countries such as the United States and the Netherlands. Analysts say so CNBCwhich warned that China could see its access to chip technology limited by measures from other countries.
Earlier this year, the Netherlands blocked the sale of some deep ultraviolet lithography systems from ASML, a Dutch company that makes equipment to make advanced chips, to China. These lithography machines are essential for the production of semiconductors.
The United States limits the sale of chips and equipment to China for fear of their military use
In October last year, the US government imposed tougher measures limit China’s access to semiconductors and chip manufacturing technology, based on previous standards. The reason for these restrictions is Washington’s concern about China’s possible use of these advanced chips in artificial intelligence and military applications.
The United States may impose more restrictions on semiconductor exports to China due to its military might. This was stated by Dan Hutcheson, vice president and principal investigator of TechInsightsin the program ‘Squawk Box Asia’ CNBC on Tuesday. According to him, the United States is in a retaliatory dynamic with China and many sectors are alarmed by its military development.
China has expressed its disagreement with the Dutch government’s decision to prevent the ASML company from selling chip manufacturing equipment to the Asian country. China asked the Netherlands to do so maintained an objective and fair position and respected market principles.
China’s Ministry of Commerce has accused the United States of using export controls as a tool to slow down China’s development in the semiconductor sector. She also said that she was “very concerned about direct interference from the United States” regarding exports of advanced technologies by Dutch companies to China.
The United States and other Western countries tighten restrictions on semiconductor exports to China
According to Chris Miller on the show ‘Squawk Box Asia’ CNBC Both the United States, the Netherlands and other Western countries will do so in early January increase measures to prevent China from accessing the most advanced equipment and chips on the market.
After the United States blocked the export of A100 and H100 chips, which are high-performance graphics units for the business sector, in China in August 2022, Nvidia created the weaker A800 and H800 chips specifically for the Chinese market. However, in October, the United States also vetoed the sale of these chips.
Due to export restrictions imposed by the United States, Nvidia had to introduce weaker chips to the Chinese market in December. And, of course, the black market was present.
Miller said so “The US government intends to apply stricter export controls to avoid existing loopholes”.
China cuts chip purchases in 2023 due to US veto
Last year, China imported a 15.4% fewer integrated circuits than in 2022, according to customs data released on January 12. The value of chip imports remained at $349.4 billion in 2023while the volume of shipments fell by 10.8%. These figures reflect the impact of restrictions imposed by the United States on China’s technology sector.
For the same reason, China seeks technological self-sufficiency in the face of the Western bloc. China’s high-tech development has faced restrictions imposed by Western powers, which fear losing their competitive advantage.
Since 2019, the United States has applied restrictive measures against Chinese technology giants such as Huawei and SMIC, the Asian country’s main chip manufacturer. That said, China has tried strengthen its domestic industry and reduce dependence on imports.
Second CINNO Researcha Shanghai company, China’s top 10 chip equipment manufacturers increased their revenues by 39% in the first half of 2023 compared to the same period last year.
“In the short term the West has an advantage, but China will not give up the competition for chips”
Daniel Newman from Futurum on CNBC.
China loses access to the most advanced chip machines
China has always been heavily dependent on foreign companies to supply critical components for its industry. However, the situation worsened after the Netherlands denied an export license to ASML, the manufacturer of the world’s most sophisticated lithographic machines.
China also cannot purchase ASML’s extreme ultraviolet lithography machines, needed to produce the most advanced and smallest chips. However, companies like TSMC, from Taiwan, use them without any problems.
2024-01-21 22:31:01
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