US announces stricter export controls on advanced chip tech

Tudor Cibean

Posts: 146   +9
Staff
In a nutshell: The Bureau of Industry and Security (BIS) unveiled stricter export control on several items with commercial and military applications, including materials like gallium oxide and diamond, software used to design advanced chips, and new technology that could soon improve gas turbines.

The BIS, an agency of the US Department of Commerce, has announced new export controls on tech deemed essential to US national security. The rule took effect on Monday and involves four technologies supporting the production of advanced semiconductors and gas turbine engines.

All four technologies are covered by the Wassenaar Arrangement, meaning that 41 other states will also impose stricter export controls on these items. Notably missing from that list of countries is China, a strategic competitor of the US.

"We are protecting the four technologies identified in today's rule from nefarious end use by applying controls through a multilateral regime," said Assistant Secretary of Commerce for Export Administration Thea D. Rozman Kendler.

The new rule will result in tighter export controls for gallium oxide and diamond, two substrates of ultra-wide bandgap semiconductors. Devices manufactured using these materials reportedly have increased military potential since they work under more severe conditions, such as higher voltage or higher temperature, than devices made from gallium nitride or silicon carbide.

Pressure Gain Combustion (PGC), a technology under investigation that could improve the thermal efficiency of gas turbines, is also affected by the new rule. The BIS notes that PGC has potential for terrestrial and aerospace applications, including rockets and hypersonic systems.

The last technology impacted by the new export controls is Electronic Computer-Aided Design (ECAD) software created to help develop integrated circuits with GAAFET structure. Engineers use ECAD software to design, analyze, optimize, and validate the performance of ICs and PCBs. This technology is key to scaling process nodes to 3nm and below.

Restricting ECAD systems will probably have a minimal short-term impact on China's chipmaking industry as no Chinese foundry can produce such advanced chips at this point (SMIC is the closest with a 7nm DUV-based node). However, future breakthroughs will likely take longer when it comes to sub-3nm processes.

Earlier this month, the US introduced new restrictions on exports of chipmaking tools to China. Meanwhile, Huawei reported another revenue drop. The BIS added the company to the Entity List three years ago.

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CowsGotMilk

Posts: 102   +223
Does this really work? When EU banned many of Russia's goods like oil, after it started the war against Ukraine, Russians in Europe started to import those goods through other 3rd party countries. Nothing has changed except increased prices.
 

Faelan

Posts: 178   +220
Does this really work? When EU banned many of Russia's goods like oil, after it started the war against Ukraine, Russians in Europe started to import those goods through other 3rd party countries. Nothing has changed except increased prices.
Aeroflot is supposedly scavenging several aircraft, including an almost brand new A350, if I remember correctly, for spare parts since they’re having trouble getting replacement parts. They’ve also told their pilots to use the entire length of the runway to slow down after landing so as to spare the brakes. I would say at least -something- has changed.
 

psycros

Posts: 4,344   +6,359
Behold the crippling Achilles heel of tech monopolies. Nobody will bother to compete with ASML because it doesn't make financial sense to reinvent that wheel...well, until you hit major supply chain shortages, but then its too late.
 

MaitieS

Posts: 172   +188
Does this really work? When EU banned many of Russia's goods like oil, after it started the war against Ukraine, Russians in Europe started to import those goods through other 3rd party countries. Nothing has changed except increased prices.
Of course stuff has changed but you're probably just not working in the type of industry where you would notice it and from your comment I can see that you're probably just reading stuff which are so oversimplified.
 

Watzupken

Posts: 671   +544
Of course stuff has changed but you're probably just not working in the type of industry where you would notice it and from your comment I can see that you're probably just reading stuff which are so oversimplified.
When sanction sets in, there will always be a short to medium term impact because it’s not possible to get sufficient access to some products quickly. However, it’s clear that the sanction hurts every country, particularly EU, since there is a clear reliance on Russian gas, and a significant one in which they will not be able to quickly find alternatives. Even if they can, it’s going to cost them a lot more. Lesser known products like fertiliser shortage may not be apparent in the short term, but will hit food production further down the road. So if you think good prices are high now, you should probably prepare for the situation to get worst. Yet, the sanctions did not deter Russia from continuing the war, while everyone else have to contend with record inflation.
 

Tantor

Posts: 352   +629
Sanctions are a waste of time. They force the nation to build up their own production. It's kind of like taking away candy from an overweight person. It forces them to diet. It makes them stronger, not weaker.

Think about it. Trump's recipe to 'make America great again' was to effectively self-sanction the US. Impose import restrictions. Bring back tech and jobs to America.

I'm still amazed that Taiwan is the world center of high tech computer chip manufacturing. How did it happen that a little island came to dominate the world? Clearly it was intentional.
 

rmcrys

Posts: 250   +208
Does this really work? [...] Nothing has changed except increased prices.

Sanctions are a waste of time. They force the nation to build up their own production. [...] Impose import restrictions. Bring back tech and jobs to America.

Sanctions have many impacts:

1) sanctioned countries had a proof of trust and they infringed it, so at least they won't sell as much as they had = get poorer ;

2) sanctioned countries were getting more developed, at least technologically. Now they won't be able to buy it (to use or copy...), so they will take many years to achieve such success = will sell crap meanwhile losing know-how and big money. How has China in 10 years come to the same point of technology as the EU/USA took many decades and investment? Copy copy copy.

3) the countries that impose Sanctions will have a low period because they will pay more for raw materials, gas, etc. and won't sell as much tech as they have. But that is temporary until they reorganize themselves.

On the long run, most "NATO" countries will develop greener alternatives, more jobs and their tech won't be copied so easily.

Analyzing Russia: politically is a dictatorship, where only "a couple" of oligarchs use the natural resources (or black market) to earn tons of money; the people live poorly and know nothing else. That's why most Russians try to escape and marry a rich European or American guy (the guys try to get a job or go into parallel "jobs"). Russia doesn't develop nothing but natural resources and weapons. And uses some other dictatorship countries (Africa, America, Asia) to exploit diamonds, gold, etc and sell their weapons. Sad..., because the Russians are very intelligent and good with arts, music and many other things...

Analyzing China: China is backing Russia up because they want cheaper oil and gas and they want an excuse to invade Taiwan and other countries. Russia gave them all. China follows their own rules, which are "we do everything that makes us rich no matter what". So workers rights, family rights, go greener to save the world (not because people are getting ill and increases the health costs ..), respect patents, develop their own, etc... it's a myth. It is fundamentally a dictatorship and about the same as Russia: some oligarchs are mega rich, have huge companies / factories and buy everything in Asia, America and Europe so they can manipulate things. My company as an example was bought by the Chinese and all they want is work work work, money money money, they even suggest we work on Sundays to make more profit but (as it isn't allowed) that we keep it secret...; the Chinese people in general could and should live much better. But that is the point no? Oligarchs vs poor manipulated people...

So, I'm all into keeping things working on "fair, free" countries and keep it straight on those dictatorship countries in order them to behave (or better, the people go against those dictatorships and make a real democracy).
 

CowsGotMilk

Posts: 102   +223
Of course stuff has changed but you're probably just not working in the type of industry where you would notice it and from your comment I can see that you're probably just reading stuff which are so oversimplified.


We all know that EU banned Russia oil. But there are rumours that UAE buys cheap Russia oil and re exports it to EU like it was made in UAE.
 

MaitieS

Posts: 172   +188
When sanction sets in, there will always be a short to medium term impact because it’s not possible to get sufficient access to some products quickly. However, it’s clear that the sanction hurts every country, particularly EU, since there is a clear reliance on Russian gas, and a significant one in which they will not be able to quickly find alternatives. Even if they can, it’s going to cost them a lot more. Lesser known products like fertiliser shortage may not be apparent in the short term, but will hit food production further down the road. So if you think good prices are high now, you should probably prepare for the situation to get worst. Yet, the sanctions did not deter Russia from continuing the war, while everyone else have to contend with record inflation.
No offense but if you are following the news you will notice that sanctions are actually working you can even year Yale's research about current state of Russian's economy to see how it really effected them and that it actually did.

Also the reason why Russia is able to still continue this war is because Oil prices are high. If they will drop Russia will also drop. Just compare overall Oil prices year to year since like 90s and compare it with Russian's GDP and you will notice connections that whenever Oil prices went high overall GDP went up. As someone once said: Russia is just a gas station covered as country :)
 

Faelan

Posts: 178   +220
We all know that EU banned Russia oil. But there are rumours that UAE buys cheap Russia oil and re exports it to EU like it was made in UAE.
Russia is now forced to sell their oil at a discount, so even if that’s true, they still take a financial hit over what they could have potentially sold it for before the sanctions. From what I’ve been told, Russia has a higher extraction cost than other oil producing countries, so they can only go so low before it’s no longer profitable and the oil price is currently on a downwards trend. That could be disastrous for Russia if this is correct and the trend continues, but I’m no expert on such matters, so it’s just my gut feeling.
 

MaitieS

Posts: 172   +188
Russia is now forced to sell their oil at a discount, so even if that’s true, they still take a financial hit over what they could have potentially sold it for before the sanctions. From what I’ve been told, Russia has a higher extraction cost than other oil producing countries, so they can only go so low before it’s no longer profitable and the oil price is currently on a downwards trend. That could be disastrous for Russia if this is correct and the trend continues, but I’m no expert on such matters, so it’s just my gut feeling.
Also don't forget that due to sanctions they are unable to replace these pipes that easily so if something breaks... it probably won't even be replaced in a while. So yeah sanctions works. Only fools would say they don't :)

edti: Lada had to shut down production after the sanctions because they can’t source some of the components xD
 
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Endymio

Posts: 1,827   +1,895
Russia is now forced to sell their oil at a discount, so even if that’s true, they still take a financial hit over what they could have potentially sold it for before the sanctions.
Surely you see the fallacy in your thinking here. Sanctions are what raised the prices in the first place.

Aeroflot [told] their pilots to use the entire length of the runway to slow down after landing so as to spare the brakes. I would say at least -something- has changed.
Plenty has changed. The one thing that hasn't changed, though, is what the sanctions were originally intended to do -- help the situation in Ukraine. Sanctions raised the world price of oil, and paradoxically (if you don't understand the Russian people) it raised Putin's popularity at home. Before sanctions, Russia was demanding nothing but Ukraine remain out of NATO and adhere to the previously agreed-upon Minsk Accords, which Zelensky had spent the prior year claiming Ukraine would disavow. But now, it seems they will concede to nothing less than all of Donbas be formally ceded.

Still, long-term that's probably the best solution, since the rise of Ukrainian ultranationalism has driven a wedge between the eastern third and western 2/3 of the nation. The lines of Ukraine were rather unnaturally drawn when the nation first formed 30 years ago It was another Yugoslavia, just waiting to happen.
 

Faelan

Posts: 178   +220
Surely you see the fallacy in your thinking here. Sanctions are what raised the prices in the first place.

Plenty has changed. The one thing that hasn't changed, though, is what the sanctions were originally intended to do -- help the situation in Ukraine. Sanctions raised the world price of oil, and paradoxically (if you don't understand the Russian people) it raised Putin's popularity at home. Before sanctions, Russia was demanding nothing but Ukraine remain out of NATO and adhere to the previously agreed-upon Minsk Accords, which Zelensky had spent the prior year claiming Ukraine would disavow. But now, it seems they will concede to nothing less than all of Donbas be formally ceded.

Still, long-term that's probably the best solution, since the rise of Ukrainian ultranationalism has driven a wedge between the eastern third and western 2/3 of the nation. The lines of Ukraine were rather unnaturally drawn when the nation first formed 30 years ago It was another Yugoslavia, just waiting to happen.
No. I don’t. Please explain. Keep in mind that it was pretty much a given that oil prices would spike as a result of sanctions. Well, it seemed obvious to me at least, but I’m no expert on market behavior, so maybe the experts were expecting something else. Either way, it’s now down to pre-war levels and for Russia that means less than that, since it’s difficult for them to find buyers willing to deal with the hassle and pay full price at the same time. Also keep in mind that in a war of attrition, it’s totally fine to take 5 times the damage for every 1 point of damage you do to the enemy, if your resource pool is 10 times that of the enemy. Efficient? No, but if it cripples him before you, it’s still a win.

As for the rest, I’m honestly not going to bother wasting a whole lot of time or energy pointing my finger at this or that being the reason. Problem is, the more I delve into that, the more it dawns on me that we don’t have the whole picture and what we do have is heavily skewed by propaganda from both sides. It is what it is - a terrible tragic situation that is going to cost many more lives on both sides and hurt economies all across the globe, at a time where we have much more important things that we should be focusing on.

There is one thing I’m absolutely sure about…

Putin is a piece of s**t that is ruining his own country and everything around him. I have a special bottle of wine reserved for when he becomes cargo 200. If you think he is a great person, then please tell me, so that I can add you to my ignore list because nothing you say will change that.