US strikes at the heart of China's tech ambitions with chipmaker ban

[F-22Raptor]

Hong Kong (CNN Business)The United States just delivered a sharp blow to China's lofty tech ambitions.

Its move to target a state-owned Chinese chipmaker over national security concerns goes to the heart of the clash between the two economic superpowers over technology and trade. It also exposes China's lack of successful homegrown semiconductor companies as one of the biggest vulnerabilities in the country's bid to become a global tech powerhouse.

The US Commerce Department on Monday announced that it is restricting American companies from selling crucial software and technology to Fujian Jinhua Integrated Circuit Co., saying it "poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States."

The ban could bring the chipmaker, which relies on foreign tech, to its knees. A similar US move against Chinese telecommunications equipment maker ZTE (ZTCOF) in April brought its factories to a standstill for months.


The US government didn't provide details about what potential activities it's worried about. But Fujian Jinhua, which is owned by the provincial government of Fujian in southeastern China, has been accused of stealing trade secrets by US chipmaker Micron Technology (MU).

https://www.cnn.com/2018/10/30/tech/trade-war-fujian-jinhua/index.html

 

[Hakikat ve Hikmet]

Now, it's getting interesting!!! It will hinder the Chinese chip making capability quite significantly!!! And, it might mean investments in the domestic IC manufacturing facilities...

it's like the trench warfare of WW1....

 

[ZeEa5KPul]

Good. China should aim for complete self-reliance in advanced technology. Having US companies embedded in China's supply chains is a critical vulnerability, and it's nice to see America excluding itself at this important early stage of Chinese semiconductor development. How helpful of them.

And it's not so much "striking at the heart" as it is biting at the ankle, like an annoying poodle.

 

[艹艹艹]

good

 

[Jlaw]

Good. China should aim for complete self-reliance in advanced technology. Having US companies embedded in China's supply chains is a critical vulnerability, and it's nice to see America excluding itself at this important early stage of Chinese semiconductor development. How helpful of them.

And it's not so much "striking at the heart" as it is biting at the ankle, like an annoying poodle.

Chinese companies like to learn the hard way.

 

[kris]

China will not stop for these kind of obstacles. They will one day reach complete self reliance

 

[Kyle Sun]

The more the better.

 

[Maxpane]

China will rise

 

[nahtanbob]

China is never going to win a war against USA, Europe, Japan, S.Korea, India and Middle East. Immigrants from some of these countries power the American economy. Companies from Europe and Japan augment American technological might.

 

[moweike]

China is never going to win a war against USA, Europe, Japan, S.Korea, India and Middle East. Immigrants from some of these countries power the American economy. Companies from Europe and Japan augment American technological might.

The US should rule the universe

 

[nahtanbob]

The US should rule the universe

until we destroy ourselves ... we are doing it slowly ... it will take maybe another 40-50 years
after that it is pax China (feel free to coin your term here) assuming chinese decide to be sane

 

[Beast]

Too late, companies like Huawei already started making it's own domestic chips and is considered one of the most advance in the world with Kirin 980. If the American do it 5years earlier. It will indeed bring Chinese to kneels but too bad the opportunity is lost.

 

[Sanchez]

We should simply stop export of all rare earth metals to see how murica crying out!

 

[Bussard Ramjet]

Too late, companies like Huawei already started making it's own domestic chips and is considered one of the most advance in the world with Kirin 980. If the American do it 5years earlier. It will indeed bring Chinese to kneels but too bad the opportunity is lost.

You must be a total idiot to say a thing like that.

Huawei's chips are made by TSMC, which is a Taiwanese company, and who relies on American equipment from Lam Research, Applied Materials, and KLA-Tencor and other firms to make chips.

You know nothing about the semiconductor supply chain it seems.

IF today America were to put a blanket bank on all Chinese firms from buying American components and technology, the whole Chinese tech sector will come to a stand still.

We should simply stop export of all rare earth metals to see how murica crying out!

The problem is that rare earth metals are found around the world and can be easily replaced. Chinese rare earths are just cheaper. If China bans rare earths export, well, other mines around the world will become profitable and will open again.

 

[Beast]

You must be a total idiot to say a thing like that.

Huawei's chips are made by TSMC, which is a Taiwanese company, and who relies on American equipment from Lam Research, Applied Materials, and KLA-Tencor and other firms to make chips.

You know nothing about the semiconductor supply chain it seems.

IF today America were to put a blanket bank on all Chinese firms from buying American components and technology, the whole Chinese tech sector will come to a stand still.



The problem is that rare earth metals are found around the world and can be easily replaced. Chinese rare earths are just cheaper. If China bans rare earths export, well, other mines around the world will become profitable and will open again.

The idiot is you. TSMC is just a fabricating semi conductor company. The final design is done by Huawei. It just like saying the great crusine cooked by a great chef is not his effort since the vegie and meat ingredient is not grow by him....

US company are not able to dictate who shall their end customers deal with since the direct customers never breach the agreement. And there is still Dutch NXP company that specializes in making semi conductor machine. If US don't deal, TSMC or China can always go for others. Anyway, Chinese semi con fabrication only depends on very high end end fabricated chips like 7nm and not those 20nm which China itself is totally capable of doing everything themselves. There is reason why loongson chips for China military application and beidou 2/3 are not able to stop by US since everything from fabrication to final end chips design is done within China.

Your mighty India can't even fabricated 100nm, such a useless country. Show more concern for your own and rather being a sourgraped and come in with all kind of b**ching for China.