Chinese companies are filling warehouses with chipmaking equipment in preparation for...

[midian182]

In brief: Chinese companies are getting ready for more import restrictions from the US, the Netherlands, and Japan by stockpiling chipmaking equipment, components, spare parts, and materials. Sources say some firms have filled several warehouses with items in preparation for additional sanctions.

Last month brought news that the Netherlands and Japan had reached an agreement with the US to impose restrictions on the export of advanced chip-manufacturing tools to China, though the sensitivity of the deal meant details have not been announced.

The South China Morning Post reports that news of the agreement has seen China's biggest semiconductor firms racing to stockpile chipmaking gear in preparation for more restrictions on advanced equipment. According to a source involved in the industry's supply chain, one Beijing firm "filled several large warehouses" with materials and components. Some of the items are not even on the US export control list.

An unnamed Tokyo source who purchases Japanese products for Chinese customers confirmed some companies are overbuying components and equipment over fears of tighter export restrictions down the road - this is despite Tokyo not starting the process yet. Japanese companies are waiting for guidance on the new rules, which are expected to come into effect this April.

Dutch giant ASML, the world's largest supplier of lithography machines used in the chipmaking process, was already prohibited from selling its most advanced extreme ultraviolet (EUV) lithography equipment, which costs about $164 million per unit, to Chinese customers as it cannot obtain an export license from the Dutch government due to pressure from the United States. Following the three-nation agreement, ASML is also prohibited from selling at least some of its older deep ultraviolet (DUV) lithography tools to Chinese clients.

The US has tightened chip-related sanctions on China over the last 12 months. Restrictions introduced in October are designed to cap the country's logic chips at the 14-nanometre node, DRAM at 18nm, and 3D NAND flash at 128 layers. The US says this will prevent its rival from developing semiconductors for military applications, including supercomputers, nuclear weapons modeling, and hypersonic weapons. The restrictions are also having a major impact on the Made in China 2025 plan for lessening the nation's reliance on foreign chipmakers.

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https://www.techspot.com/news/97745-chinese-companies-filling-warehouses-chipmaking-equipment-preparation-more.html

 

[toooooot]

These plates look magnificent. I would put one on the wall if I could get one cheap.

 

[tellmewhy]

These measures are reminiscent of the Maginot Line (https://en.wikipedia.org/wiki/Maginot_Line), which was a static fortification that gave the French a false sense of security, immobilized all French troops inside it, and in the end was simply circumvented.
The Chinese are one of the most peaceful peoples. They were the ones who discovered gunpowder and instead of using it for weapons, they used it for fireworks. The possibility of them attacking first is low. But I think such offensive measures might make them angry.

 

[BuckarooBonzaii]

Since everything military is computerized, crippling the source will do some harm but the East has always found some ways to get around obstacles.

 

[Revolution 11]

These measures are reminiscent of the Maginot Line (https://en.wikipedia.org/wiki/Maginot_Line), which was a static fortification that gave the French a false sense of security, immobilized all French troops inside it, and in the end was simply circumvented.
The Chinese are one of the most peaceful peoples. They were the ones who discovered gunpowder and instead of using it for weapons, they used it for fireworks. The possibility of them attacking first is low. But I think such offensive measures might make them angry.

You do know that in this weird analogy of yours, the Americans are the French and the Chinese are the Germans aggressors, right.....

Also, if these measures are so ineffective and easily circumvented as you believe, why would the Chinese even worry about this? Why even the low possibility of them attacking first?

Either the measures are effective so China is provoked or they are not and China will not react. You can not credibly claim that the measures don't work yet China will still be provoked.

 

[ultimodragon]

These measures are reminiscent of the Maginot Line (https://en.wikipedia.org/wiki/Maginot_Line), which was a static fortification that gave the French a false sense of security, immobilized all French troops inside it, and in the end was simply circumvented.
The Chinese are one of the most peaceful peoples. They were the ones who discovered gunpowder and instead of using it for weapons, they used it for fireworks. The possibility of them attacking first is low. But I think such offensive measures might make them angry.

china is peaceful??? LOL. read the news. they've been in conflict with few southeast asian countries because of south china sea. china want to claim it all. sending navy ship with fisherman ships. china 'control' some countries with debt. why do u think USA impose sanctions?

 

[Later]

When you've been making chips as long as you did and you find out the maker might become tougher than you, what do you do ?. The answer is easy put sanctions on him to keep him at bay while you try to take the cream of the proverbial cake. This is a amazing example of putting your eggs in one basket, and basket grew to keep a hole lot of eggs, and no-one has those kind of eggs.

 

[Uncle Al]

"The Chinese are one of the most peaceful peoples"

Hmmmmmm ...... history does not reflect that at all and while the population might be peaceable, their leadership is anything but!

 

[Vanderlinde]

These sanctions are so stupid. China could technically start investing in their own R&D and within a decade be equal or even ahead in regards of tech.

 

[captaincranky]

Also, if these measures are so ineffective and easily circumvented as you believe, why would the Chinese even worry about this? Why even the low possibility of them attacking first?

Those of us who are old enough to remember Tienanmen Square, (you know, tanks against student protesters), think you don't know what you're talking about.

And more recently, there was the takeover of Hong Kong

Even more recently, the Chinese, "activated troops", because American aircraft were flying in international waters in the south China sea. Which, BTW, doesn't belong to China.

 

[Dimitrios]

Is this the new version of Milk Bread & eggs? Sorry had to say it.

 

[GeforcerFX]

These sanctions are so stupid. China could technically start investing in their own R&D and within a decade be equal or even ahead in regards of tech.

Most estimates I have seen vary but say if they invested around $200-600 billion they would be near equal with entirely domestic production by 2032-2040. But after reaching that who are they going to sell the chips too? Europe, America and the rest of developed Asia will have prob restricted there import by then, that's billions invested for a much more shrunken market potential. China's biggest concern at this point is less economical and more military, the USA and allies are concerned about Chinese tech advances in both areas.

 

[zulu53]

Hopefully most of these manufacturers have 2 versions of their product or one version with a "switch"; as was done by many manufacturers in WW2 and post war Asia (for Japan). One with the built in weak point/backdoor or secret impossible-to-acquire ingredient and one that it fully functional; and they are determining which version goes to the Chinese for them to use (for a short time) and reverse engineer (with the flaw intact). Kind of like Telsa are doing with their battery factories in China.