Florida Adopts Toughest Rules yet to Protect People and Organizations from Chinese Government Intrusion.

Yesterday Florida governor Ron DeSantis released Executive Order 22-216 to counter Chinese government intrusion in Florida’s computer networks. Noting the critical security threat detailed by national defense authorities and the actions taken to secure federal networks, Governor DeSantis took the step to secure Florida’s state and local government networks by preventing the exposure of government information and technology services and systems in Florida to the Chinese government. China Tech Threat (CTT) has detailed the important efforts to protect people and enterprises whose data is held within state government. Just last week, CTT was in Florida at a James Madison Institute tech summit discussing threats to Florida and actions that leaders intend to take to secure Florida’s residents, businesses and infrastructure.… 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

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

Estevez Senate Hearing: Mixed Messages on YMTC Continue

Bureau of Industry and Security (BIS) Under Secretary Alan Estevez testified to the Senate Banking Committee on Thursday about issues related to U.S. Export Controls. There is still no clarity what the U.S. government’s stance is on Chinese military-linked chipmaker YMTC. Senator Mark Warner of Virginia told Estevez that American memory chip manufacturers have complained to him about YMTC’s activities, which he said are “typical of a lot of the new Chinese memory and chip-related firms.” That is to say, they are tied to the Chinese military and benefit from massive subsidies designed to kill off foreign competitors. Sen. Warner also noted a recent Financial Times story detailing YMTC’s ties to Huawei, the Chinese telecommunications firm on the Commerce Department’s… Read More

YMTC’s New Plant to Come Online By 2023; U.S. Experts Express Alarm

The Japan-based outlet Nikkei Asia reports that YMTC – the Chinese semiconductor chipmaker with deep ties to the Chinese military – will bring a second production facility online by the end of this year. Opening that plant will aid YMTC in boosting its capacity to produce cutting edge chips – not just its current most advanced output of 128-layer chips, but 196 and 232-layer chips down the line. The new factory, according to the Nikkei report, “could further close the company’s technology and output gap with global leaders like Samsung of South Korea and Micron Technology of the U.S.” Another outlet, a Chinese-language website called Sina Technology, likewise reports – perhaps gloats – that “The new fab will eventually double… Read More

Legislators: BIS Is Failing to Implement Export Controls; The Chinese Government Benefits

Earlier this month, Texas Representative Michael McCaul, Chairman of the China Task Force, hosted a roundtable on export controls. Featuring task force members Representatives Mark Green (TN-07), Scott Perry (PA-10) and Andy Barr (KY-6), the discussion centered on the actions that must be taken to prevent the Chinese Communist Party (CCP) from obtaining critical U.S. technology.  Rep. McCaul opened the discussion with a warning that the CCP is a long-term generational threat and posed the question: “​​How are we going to compete against China if we don’t address this very important issue of us exporting our technology that they then use to build their military apparatus?” A consistent theme throughout the discussion was how ineffective export controls currently are and… Read More

Is BIS Edging Closer to Putting YMTC on the Entity List?

Is BIS Edging Closer to Putting YMTC on the Entity List? The Information reports that the U.S. Department of Commerce is weighing restrictions on the sale of semiconductor manufacturing equipment (SME) to YMTC, China’s national champion semiconductor manufacturer known to have close ties with the Chinese military. These restrictions, which would also reportedly apply to other state-backed firms such as Hua Hong Semiconductor and ChangXin Memory Technologies, would deal a blow to YMTC’s ability to produce chips, and secure a victory for American national security. The rules, which reportedly take months to develop, would echo the decision the Commerce Department’s Bureau of Industry and Security (BIS) made in 2020 to place China’s Semiconductor Manufacturing International Corporation on the Entity List… Read More

Lenovo to Benefit from the PRC’s Indigenous Tech Ultimatum. Will Democratic Countries Respond?  

Early this morning, Bloomberg reported, “China has ordered central government agencies and state-backed corporations to replace foreign-branded personal computers with domestic alternatives.” The directive, claims Bloomberg, is consistent with China’s “sweeping effort to reduce its dependence on geopolitical rivals such as the U.S. for everything from semiconductors to servers and phones.” Lenovo Consolidates Chinese Market and Continues to Sell to States – Despite Military Bans   Lenovo, the global PC manufacturer partly owned/controlled by the Chinese government, will profit most from the ban as the central government replaces 50+ million PCs, with many more sales to come from provincial governments. Ironically, the Bloomberg report speculated that Beijing is concerned about security, yet the State Department, Department of Homeland Security, and… Read More

U.S. Sanctions Set to Bite Hikvision – But Bigger China Tech Threats Like YTMC Still Loom

The Financial Times reports that the U.S. government is preparing to sanction Hikvision, the Chinese surveillance technology giant. If enacted, these sanctions would cause an untold number of companies and foreign governments to run the risk of being sanctioned themselves, should they continue to use Hikvision equipment. There will be no choice but for companies and governments to rip and replace Hikvision technologies. This news of potential U.S. government action is certainly welcome. Not only could it help to stifle the Chinese government’s campaign of surreptitiously gathering mass quantities of data on the world’s citizens, but given that Hikvision has been known to put storage particles from YMTC in its gear, it could also  impact the chipmaker with deep ties… Read More

PLA in Your iPhone? CTT Launches New Site on the Implications of Apple’s Negotiations with Chinese “National Champion” YMTC

Late last month a report surfaced that Apple is in talks with China’s “national champion” semiconductor maker, Yangtze Memory Technologies Co. (YMTC), to provide chips for its next iPhone. This week, China Tech Threat (CTT) is launching a new site to track Apple’s negotiations with YMTC, what’s at stake for the U.S. from national security and economic standpoints, and how policymakers and experts are reacting. “Apple is the most valuable brand in the world, and the choices it makes send important signals,” Dr. Roslyn Layton explained. “Apple’s partnership with YMTC would put the Chinese military in the iPhone, one of the most popular devices in the world. This deal would threaten Americans’ privacy and security, undermine semiconductor jobs in democratic… Read More