SOS International Report Details Chinese State-Owned YMTC’s Military Ties

Last December, James Mulvenon of SOS International released a report that explored Chinese state-owned memory chip maker Yangtze Memory Technologies Company’s (YMTC) ties to the Chinese Communist Party (CCP) and People’s Liberation Army (PLA). The report identified alarming uses of state subsidies to support espionage and anticompetitive practices against competitors. The December report came weeks after Dr. Roslyn Layton cautioned in Forbes that, given ties to the PLA, YMTC and other Chinese state-owned chip makers “must be added to the Entity List [or at least designated as a Military End User] to ensure critical US technology is not weaponized against Americans.” In February, Dr. Mulvenon, who is rumored to be a front-runner to lead the U.S. Commerce Department’s Bureau of Industry and… Read More

Rep. McCaul, Sen. Cotton Call on U.S. Commerce to Department to Tighten Controls on SME

Congressman Michael McCaul, ranking member of the House Foreign Affairs Committee, and Senator Tom Cotton called on U.S. Commerce Secretary Gina Raimondo last week to tighten restriction on the sale of semiconductor manufacturing equipment (SME) to China. “The export of advanced dual-use U.S. technology to any People’s Republic of China entity is effectively a direct delivery to the People’s Liberation Army,” the letter states. “Our export control system should reflect this reality.” Rep. McCaul and Sen. Cotton cite a Washington Post article this month, which revealed that sensitive electronic design automation (EDA) equipment sold to an ostensibly civilian Chinese company is now being used by China’s military to develop advanced weapons. Among those is a hypersonic missile that may be… Read More

New Bipartisan Bill Will Give U.S. An Edge In Competition With China

The recent introduction of the Endless Frontiers Act represents a new, bipartisan tool for the U.S. to combat the intensifying pressure from China, especially when it comes to semiconductors. The bill calls for $100 billion over five years for basic and advanced technology research and $10 billion to create new technology hubs across the country. As a lead bill sponsor, Senate Majority Leaders said “whichever nation develops new technologies first – be they democratic or authoritarian – will set the terms for their use.” Schumer has been out front in recruiting semiconductor initiatives to New York.  A Reuters report on the bill quoted Representative Mike Gallagher who stated that “the Chinese Communist Party has used decades of intellectual property theft… Read More

Roslyn Layton Tells Voices of America The Importance of Securing the Semiconductor Industry in Both the Long and Short Term

During President Biden hosted a virtual meeting with leaders of some of the country’s biggest companies impacted by a global shortage of semiconductors, on April 12, he noted that the U.S must find a way to “strengthen our domestic semiconductor industry and secure the American supply chain.”  This meeting and the President’s urgency on this matter is commendable. However, in an article published by Voice of America White House Bureau Cheif Steve Herman, Roslyn Layton made it clear that the short-term issue of a shortage of semiconductors for the automotive industry should not be confused with the larger, existential problem that the United States does not produce enough of its own chips. Dr. Layton went on to say that there… Read More

Summarizing CSET on Security Without Collateral Damage

Saif M. Khan is a leading tech policy expert with a background in intellectual property law and an education in physics. A Research Fellow at Georgetown’s Center for Security and Emerging Technology (CSET), he studies AI policy, semiconductor supply chains, China’s semiconductor industry and U.S. trade policy. Khan has written many, highly detailed reports which reflect on the importance of export controls and the Bureau of Industry and Security (BIS). He recently told China Tech Threat: “It is important for policymakers to have a deep understanding of both the complexities of export control regulations as well as the relevant technologies and supply chains to ensure export controls are crafted in a targeted way to achieve their intended security goals while minimizing… Read More

What to Expect, the Next Four Years

Earlier this week, China Tech Threat’s Roslyn Layton and Coalition for a Prosperous America’s (CPA) Jeff Ferry put out a new report on “Maintaining U.S. Leadership in Semiconductors and Countering China’s Threats.” They discussed it yesterday as part of CPA’s annual conference on “What to Expect, the Next Four Years.” In framing the discussion and summarizing the paper, Roslyn noted: American consumers were once told that Chinese IT was a good thing. That approach created many problems, including loss of manufacturing prowess and personal information, as well as increased cyberattacks and data breaches. Now we have a national security issue, and it’s playing out in many areas, including the semiconductor industry. Semiconductors are the building blocks of all electronics. They… Read More

President Biden Signs Executive Order Directing Review of U.S. Supply Chains

On Wednesday, President Biden signed an executive order directing both an immediate and year-long review of U.S. supply chains for critical products, including semiconductors.  “We need to stop playing catch up after the supply chain crisis hits,” President Biden said. “We need to prevent the supply chain crisis from hitting in the first place.” The executive order – which requires a 100-day review of semiconductors, pharmaceuticals, advanced batteries and rare earth minerals supply chains and a one-year review of six sectors of the economy – follows bipartisan calls from Congress cautioning about the dangers of a semiconductor shortage. “Right now, semiconductor manufacturing is a dangerous weak spot in our economy and in our national security,” Senator Chuck Schumer said Tuesday… Read More

Report: The Detrimental Impact of China’s Mercantilist Policies on the Semiconductor Industry

In his new report, Stephen Ezell, Vice President of Global Innovation Policy at Information Technology and Innovation Foundation (ITIF), explores how China’s aggressive strategy to distort and harm the global semiconductor market is continues to hurt the U.S and the market at large.    In highlighting the growth of the industry, he explains “a thriving global semiconductor industry depends upon three critical conditions: fair access to global markets, market-based competition to reduce artificial overcapacity and significant price declines, and minimal intellectual property theft.” To contextualize this, he uses the example of Applied Materials, ASML, KLA Tencor, and Lam Research, a collection of US and European companies that “manufacture the machines and tooling equipment that run semiconductor fabs.” Ezell explains that… Read More

Semiconductors are the New Oil: Looking ahead at the Semiconductor Market in 2021

In a webinar hosted by Semiconductor Industry Association (SIA) last week, participants emphasized the importance of the industry and expressed great expectations for its growth in the coming years. C.J. Muse, Senior Managing Director and Head of Global Semiconductor Research at Evercore ISI, said that while 2020 was a turbulent year for the industry, it was also “the year that there was recognition of the secular importance of semiconductors driving the digitalization across nearly every industry vertical.” His fellow participant, Dale Ford, Chief Analyst at the Electronic Components Industry Association (ECIA) also expressed optimism for the market, suggesting that if trend rates continue, the semiconductor industry will generate $750 billion in revenues by 2030 and could reach $1 trillion by… Read More

Lincoln Network Event: US to experience severe industrial loss without US Semiconductor Policy

On January 22, the Lincoln Network hosted a panel titled “The Future of U.S. Semiconductor Policy: Answering the China Chip Challenge.” Panelists included China Tech Threat Co-Founder Dr. Roslyn Layton, Stephen Ezell, Vice-President, Global Innovation Policy at the Information Technology and Innovation Foundation (ITIF), Dr. James Mulvenon, Director of Intelligence Integration at SOSi and Dan Lips, Director of Cyber and National Security at Lincoln Network. In the most critical part of the conversation, host Alexiaa Jordan commended Dr. Layton for clearly stating the steps the US can take in order to secure their policy, as well as naming the companies that this policy must address. In a follow up to this, Dr. Mulvenon noted that when US export control policy… Read More