Semiconductors and Export Controls: The Time to Act is NOW

Earlier this week, Reuters wrote in an exclusive that the Biden administration is going to “hit China with broader curbs on U.S. chip and tool exports” next month. There have been several stories that the administration is considering actions of this sort, so suggesting that it is imminent is encouraging. However, the timing and scope are concerning – a point that is underscored by a new report that finds America “is approaching a ‘critical moment’ in the global technology race, and the price of losing could be a world beholden to China.” Chinese military-aligned fabs like YMTC and CXMT need American-made semiconductor manufacturing equipment (SME) to advance, and they depend on firms like KLA Corp, Lam Research, and Applied Materials… Read More

Dr. Layton, Rep. Momtahan Join Rep. Fine to Discuss the Perils of State Contracts in Miami

The James Madison Institute – Florida’s top  think tank – hosted their annual Tech Summit in Miami  with a dozen distinguished speakers including Miami Mayor Francis Suarez and former FCC Chairman Ajit Pai. To address the growing China Tech Threat, Dr. Roslyn Layton was joined by Georgia Rep. Martin Momtahan and Florida Rep. Randy Fine. Dr. Layton set the tone, explaining that the separation of federal and state governments, while a prized feature of American governance, creates an opportunity for our adversaries. Recent stories in Fox News and the Associated Press demonstrate that the Chinese Community Party actively targets state and local American legislators and has already successfully hacked six state governments. Rep. Fine, a former Harvard economics instructor, cautioned… Read More

More Scrutiny of Apple Hugging the Chinese Communist Party

Apple’s launch of its new iPhone 14 last week served as a moment for elevated scrutiny. As China Tech Threat warned in a blog, the use of chips from the Chinese military chipmaker YMTC in the smartphone “Signals Era Of Dangerous Partnership With Chinese Military Chip Maker.” China Tech Threat wasn’t the only one sounding the alarm. Senator Marco Rubio told the Financial Times Apple is “playing with fire,” adding that “It knows the security risks posed by YMTC. If it moves forward, it will be subject to scrutiny like it has never seen from the federal government.” Sen. Rubio’s “rage,” as it is characterized by the New York Post, follows his April 2022 letter to Apple CEO Tim Cook… Read More

Apple’s iPhone 14 Release Signals Era Of Dangerous Partnership With Chinese Military Chip Maker

As Apple prepares to unveil its iPhone 14 smartphone at its “Far Out” event today, BusinessKorea add new scrutiny to earlier reports that Apple is compromising American security by shipping devices with chips from the Chinese military chipmaker YMTC. The new reporting suggests that the partnership is laying the foundation for further Apple devices to be outfitted with the suspect circuits. “The move represents a strong win for YMTC and will ensure steady supply of flash memory for Apple’s next-generation products,” reports Tom’s Hardware.  @media all and (min-width: 768px){#kt-layout-id_5a0900-00 .kt-row-column-wrap .inner-column-1{flex:0 1 60%;-webkit-flex:0 1 60%;}#kt-layout-id_5a0900-00 .kt-row-column-wrap .inner-column-2{flex:0 1 40%;-webkit-flex:0 1 40%;}}#kt-layout-id_5a0900-00 .kt-row-column-wrap{padding-top:0px;padding-bottom:0px;} China Tech Threat raised the concern about Apple’s deal with YMTC in its report “Silicon Sellout: How Apple’s… Read More

Momentum Builds Behind State Actions to Ban Risky Chinese Tech

This spring, Georgia enacted a law that prohibits companies owned or operated by China to bid on or submit a proposal for a state contract. Governor Brian Kemp signed the bill into law in May 2022, calling it “proactive step to enhance our technological and economic security.” The necessary and timely legislation is critical to helping Georgia close the state-federal tech threat disconnect. While the level of risk the use of China-owned technology presents to our national and economic security is so high that it is restricted by the U.S Military, the State Department, our intelligence agencies and elsewhere, these restrictions don’t transcend to the state level. With a March AP report revealing that the Chinese government broke into the computer networks… Read More

Bringing the State-Federal Tech Threat Disconnect Discussion to Florida

Competition is hot across the U.S. as states look to attract industry and human capital fleeing California and other states. The profile of Florida, now America’s third most populous state, is rising for tech investors to park their money, entrepreneurs to start businesses, GenZers to buy a home, and parents to secure an education for their children. Florida ranks as the world’s 16th largest economy, between Mexico and Indonesia. Not only does Florida’s state government play a critical role to enable this flow with a mix of fiscal policy and incentives for families and enterprise, but it must also ensure the integrity, privacy, and security of government data. China Tech Threat Co-Founder Dr. Roslyn Layton will join the James Madison… Read More

The Most Dangerous Chinese Company You Haven’t Heard Of

While Chinese companies like Huawei and TikTok have grabbed headlines for threatening American national security and data privacy, the Chinese chipmaker CXMT is less well-known. That doesn’t make it any less dangerous. Founded in 2016, Changxin Memory Technologies (CXMT) was created as a “pilot demonstration” of the Made in China 2025 initiative – the Chinese government’s effort to make China the world leader in high-tech manufacturing. Like fellow would-be state champion chipmakers SMIC and YMTC, CXMT is awash in Chinese subsidies. The company’s strategy relies on IP theft to close ground against competitors.  It also has multiple business leaders also serving in important Communist Party roles and connections to the PLA. As China’s largest maker of DRAM (dynamic random-access memory)… Read More

Chips Act Is the Carrot, Where’s The Stick?

Josh Rogin’s recent column on the Chips Act, “Designed to compete with China, the Chips bill falls short,” calls needed attention to multi-front battle the US must be waging to halt China’s quest to dominate global high-tech manufacturing, and help us compete and win against America’s leading adversary. While the long overdue Chips Act will strengthen America’s position in the semiconductor market, create American jobs and bolster our national security, the bill will only be effective over the long-term when complemented with other strategies, like export controls and adding more companies linked to the Chinese government on the Entity List. CTT Co-Founder Dr. Roslyn Layton underscored these concerning omissions from the bill in a recent interview with the UK Telegraph… Read More

YMTC Increases Technical Capabilities While Commerce Department Dithers

A new report from Dylan Patel of SemiAnalysis paints a picture of a NAND chip market over which Chinese chipmakers like YMTC are poised to grab massive market share. Over the past few years, the NAND chip market has enjoyed explosive growth, with Patel writing that “the number of bits of NAND manufactured and shipped has grown at a pace of 30% to 35% every year.” Earlier this month, YMTC announced the ability to develop 232-layer chips, a major technological breakthrough that puts it on par with rival global leaders. Writes Patel, “YMTC is not just a copycat with trailing edge technology like many erroneously perceive Chinese semiconductor companies on the leading edge. They are building their own innovative and… Read More

New Heritage Foundation Report: Chinese Technology Infiltrating State Governments

Michael Cunningham of the Heritage Foundation has written an excellent new report: “Why State Legislatures Must Confront Chinese Infiltration.” The report covers myriad Chinese influence and intrusion activities taking place inside the U.S. One of the reports key imperatives is, “Preventing companies linked to the Chinese government from obtaining contracts to build critical infrastructure or supply technology to state government organizations.” Cunningham elaborates on the dangers of state governments letting Chinese-owned companies into their systems: When Americans allow firms controlled by a geopolitical rival to build their critical infrastructure, they practically invite the Chinese to embed vulnerabilities they can exploit in times of conflict. When Americans procure technology from a geopolitical foe, they invite that foe inside the systems used… Read More