Silicon Sellout Report: Why Apple is Making a Deal with Chinese Semiconductor Manufacturer YMTC

Today, the Coalition for a Prosperous America and China Tech Threat have released Silicon Sellout, a new report detailing how Apple’s decision to use chips made by Chinese semiconductor manufacturer YMTC threatens to harm Americans’ security and privacy and reshape the global semiconductor market in China’s favor.  To recap: Right now Apple has entered into an agreement with YMTC to source YMTC chips for the iPhone. This deal will have serious negative consequences for both Americans and the world: It will concentrate more chip production inside China at a time when supply chains are already vulnerable to Chinese lockdowns and government diktats. It will create major security and privacy risks to Apple users all over the world. It will increase… 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

The Impending NAND Apocalypse Reinforces China’s Drive for Global Tech Supremacy

Dr. Roslyn Layton recently talked with Dylan Patel, a leading semiconductor industry analyst, about the evolving nature of the semiconductor industry as it relates to security, technology, and the recent NVIDIA hacks. During the conversation, Patel also highlighted the NAND market and impending “NAND Apocalypse” given China’s investment vis-a-vis their “Made in China” plan. He stated, “The NAND apocalypse is the result of Chinese subsidies into semiconductors, totaling roughly $250 billion across 2020 to 2025. They’re ‘Made in China’ plan has them going to a very high percentage of domestically produced chips. And NAND is a critical component within that… YMTC is able to produce NAND memory chips, critical memory that’s used in nearly every device and server and military… Read More

Lenovo Appears to Still Be Selling Technology to Russia. That Should Warrant U.S. Scrutiny

Following pleas from the Ukrainian Deputy Prime Minister to stop supplying Russia, Taiwanese PC maker ASUS announced this week that it has ceased shipments and will abide by “all international regulations.” The same cannot be said of China’s Lenovo, the world’s largest personal computer manufacturer—at least not with certainty. Despite reports that Lenovo stopped sales in Russia, other media reporting suggests that the company—which controls 18.5% of the Russian PC market (compared to ASUS’ 15.6%)—continues to do business there. Lenovo has not offered an official statement of whether it is maintaining its operations in Russia. “Xi Jinping’s role in Ukraine is far less visible than Vladimir Putin’s, but make no mistake: China is also a combatant in the war,” Gordon… Read More

Two New Reports Underscore Chinese Communist Party’s Drive for Global Tech Supremacy

Both the U.S. government and independent academic researchers are telling the world what it needs to hear – China’s drive for dominance in the tech sector is a grave threat to American national security and free people everywhere. Let’s start with the newly released Director of National Intelligence’s Annual Threat Assessment (ATA) – a yearly declassified summary of the intelligence community’s findings on America’s adversaries. As page 6 of the report states: China will remain the top threat to U.S. technological competitiveness as Beijing targets key sectors and proprietary commercial and military technology from U.S. and allied companies and institutions. Beijing uses a variety of tools, from public investment to espionage to advance its technological capabilities. Beijing’s willingness to use… Read More

GA on the Cusp of Bolstering the State Against China Tech Threats as Reports of New PRC Hacks Emerge

In February, the Georgia State Senate and House Rules Committee passed legislation, SB 346, that will prohibit the State of Georgia or any state agencies from contracting with any company owned or operated by the Chinese government. Led by State Senator Jeff Mullis and State Representative Martin Momtahan, the legislation is poised for consideration on the House floor.  The necessary and timely legislation advances as a new AP report reveals that the Chinese government broke into the computer networks of at least six state governments in the United States in the last year alone. According to the private cybersecurity firm that revealed the news, the suspected hackers are known for launching attacks for old-fashioned espionage purposes and for financial gain. China Tech Threat (CTT)… Read More

#VoteEstevezNow: Our Adversaries Benefit from the Senate’s Delay

As the crisis in Ukraine continues, more eyes are turning towards China. Over the weekend, The Washington Post reported that Russia is seeking military equipment and aid from China. Eric Sayers, a former advisor to the U.S. Indo Pacific Command, is quoted by The Post as saying, “If Beijing is offering any type of military assistance to aid Moscow’s war in Ukraine, the spillover effects on U.S.-China policy could be vast.” Sayers added, “It would abruptly end debate about pathways to working with Beijing. More importantly, it would push Washington to accelerate retaliatory and decoupling actions toward China, and create new pressure on companies now doing business in China.” Companies like Lam Research, Applied Materials, and KLA Corporation – semiconductor… Read More

Threat Tech Disconnect: States Are “Buying the Stuff That’s Going to Create Problems”

Despite federal actions to prevent government agencies from purchasing potentially vulnerable Chinese-made technology, inconsistent state- and local-level policies have created security gaps that put citizens’ personal information at risk. This disconnect was the focus of the latest installment of China Tech Threat’s Quick Cut series on Wednesday, The Tech Threat Disconnect. “It’s time for us to wake up,” said U.S. Representative Claudia Tenney (R-NY22). “This can be a real problem for the security of our residents and our local governments. Yet, states continue to buy products from companies like Lexmark, Hikvision and others, which are Chinese owned interests.” “Who knows what’s embedded in these Lexmark printers and especially in Lenovo computers?” she added, pointing to the prominent brands that have… Read More

6 States Hacked by China: Register To Learn More About the Federal-State Tech Threat Disconnect 

Register now to join China Tech Threat’s webinar tomorrow, Tech Threat Disconnect: Federal-State Security Gaps Open Doors to PRC Intrusion. With a breaking AP report that the Chinese government broke into the computer networks of at least six state governments in the United States in the last year, learn more about how the use of Chinese technology by state ​​financial institutions, government agencies, infrastructure and individuals opens the door to attack by the People’s Republic of China (PRC). According to private cybersecurity firm Mandiant, which revealed the news, the suspected hackers are known for launching attacks for old-fashioned espionage purposes and for financial gain. When Federal agencies and the U.S. military have rightly taken action to restrict the use of… Read More

Bipartisan Senate Letter Adds New Round of Pressure on Chinese Dronemaker DJI 

Action to restrict Chinese Dronemaker DJI are coming from all corners of the U.S. government. The latest move comes from a bipartisan group of U.S. senators who are calling on the Department of Transportation to prohibit taxpayer-funded grants from being used to fund drones manufactured by companies controlled by the People’s Republic of China (PRC). Use of these compromised drones could give the PRC access to images of our nation’s critical infrastructure that they capture.   In a letter to Secretary Buttigieg, Senators Peters (D-MI), Cortez Masto (D-NV), Blackburn (R-TN), Cornyn (R-TX), Murphy (D-CT), Rubio (R-FL), Scott (R-FL), Blumenthal (D-CT) and Kelly (D-AZ) call on DOT to prohibit any Strengthening Mobility and Revolutionizing Transportation (SMART) grant funds to be used for drones manufactured by companies that are subject… Read More