US to impose more chip ban in 2024

China now faces the threat of more restrictions on semiconductor exports from countries like the United States and the Netherlands, Analysts said this cnbcWhich warned that China could see its access to chip technology limited by measures taken by other countries.

Earlier this year, the Netherlands blocked the sale to China of some deep ultraviolet lithography systems from ASML, a Dutch company that makes equipment to make advanced chips. These are lithography machines Essential for semiconductor manufacturing,

The United States has banned the sale of chips and equipment to China over fears of military use

In October last year, the United States government took strict measures Limit China’s access to semiconductors and chip manufacturing technology, based on previous standards. The reason for these restrictions is Washington’s concerns about the potential use of these advanced chips by China in artificial intelligence and military applications.

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The United States may impose more restrictions on the export of semiconductors to China due to its military power, Dan Hutchison, vice president and principal investigator of TechInsightsIn the program ‘Squawk Box Asia’ cnbc on Tuesday. According to him, America is in a retaliatory mode with China and many areas are worried about its military development.

China expressed disagreement over the Dutch government’s decision to block ASML company from selling chip manufacturing equipment in the Asian country. China asked Netherlands Maintained an objective and impartial position and respected market principles,

China ASML USA
China ASML USA

China’s Commerce Ministry accused the United States of using export controls A tool to slow down China’s growth in semiconductor sector, He also said that he was “Extremely concerned about direct US intervention” In the case of advanced technology exports by Dutch companies to China.

The United States and other Western countries have tightened restrictions on the export of semiconductors to China

According to Chris Miller on the show ‘Squawk Box Asia’ cnbc In early January, both the United States and the Netherlands and other Western countries are going increase measures To prevent China from accessing the most advanced equipment and chips on the market.

Chipsets in global market and political context
Chipsets in global market and political context

After the United States blocked the export of A100 and H100 chips, which are High-performance graphics units for the business sectorFor China in August 2022, Nvidia created weaker A800 and H800 chips specifically for the Chinese market. However, in October the US also vetoed the sale of these chips.

As a result of export limitations imposed by the United States, Nvidia had to introduce weaker chips to the Chinese market in December. And yes, black market was present.

China violated the United States veto and achieved the unimaginable: buying Nvidia's most powerful chips on the black market

miller said so “The US government intends to impose strict export controls to avoid existing gaps”,

China reduces its chip purchases in 2023 due to US veto

Last year China imported 15.4% less integrated circuits by 2022According to customs data released on January 12. Chip import value remained stable $349.4 billion in 2023While the shipment quantity fell 10.8%, These figures show the impact of sanctions imposed by the United States on the Chinese technology sector.

The United States hits China's chip industry hard in 2023.  Its impact: This was the year with the lowest recorded imports

For this reason, China seeks technological self-reliance in the face of Western blockade. High technology development in China has faced restrictions imposed by Western powers, who fear losing their competitive advantage.

Since 2019, the US has imposed restrictive measures on Chinese technology giants such as Huawei and SMIC, the Asian country’s main chipmaker. In view of this, China has demanded Strengthen your domestic industry and reduce dependence on imports,

G Tech Technology Factory Zhuhai China
G Tech Technology Factory Zhuhai China

According to sinno researchA Shanghai-based company, among China’s top 10 chip equipment makers, increased its revenue 39% in the first half of 2023 compared to the same period last year,

“In the short term, the West has the advantage, but China will not lose in the competition for chips”

From Futurum’s Daniel Newman to CNBC.

China has lost access to most advanced chip machines

China has always been highly dependent on foreign companies to provide vital components for its industry. However, the situation has worsened after the Netherlands refused to grant an export license to ASML, the manufacturer of the world’s most sophisticated lithography machines.

Semiconductor EUV Extreme Ultra Violet
Semiconductor EUV Extreme Ultra Violet

China can’t even buy ASML’s extreme ultraviolet lithography machines, which are needed to produce the most advanced and smallest chips. However, companies like Taiwan’s TSMC use them without any problems.

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