SMIC’s Boom Shows Last Year’s Export Controls Haven’t Properly Limited the PRC’s Semiconductor Capabilities

A year ago on October 7, the U.S. government seemed like it was getting tough when it issued  long-awaited export controls targeting the Chinese chip sector. But, one year in, it is now evident that these restrictions have not been adequate to stop China from making major chip advances or positioning itself to dominate the global semiconductor space. As Kate O’Keefe and Asa Fitch report in the Wall Street Journal, Chinese semiconductor maker SMIC is under some form of sanctions from the Department of Defense, the Department of Treasury, and the Department of Commerce. But it still took in $1.5 billion in 2022 from American semiconductor design companies. That revenue can be plowed back into SMIC’s research and development process… Read More

COMING SOON: New Report Demonstrates the Need to Defend Legacy Chips or Risk the U.S. Military Relying on a Chinese Monopoly

China Tech Threat will soon release a new briefing paper titled “Every Chips Matters,” urging the U.S. government to aggressively protect domestic legacy chip capacity, alongside high-tech semiconductors. Last month, Alan Estevez, Under Secretary for the Bureau of Industry and Security said, “Chips are a ubiquitous commodity at the legacy level.” The problem with Mr. Estevez’s thinking is that legacy chips are critical to defense systems, automobiles, medical devices, consumer electronics, and more. As evidence, Mr. Estevez’s boss – Commerce Secretary Gina Raimondo – noted that Russia was repurposing computer chips from dishwashers and refrigerators on the Ukraine battlefield for military equipment. Failing to defend this “ubiquitous commodity” invites the People’s Republic of China (PRC) to flood the international marketplace… Read More