Posted on 09/05/2020 8:50:40 PM PDT by SeekAndFind
Executives of Chinese companies which produce chips vital in every device that stores data from computers to mobile phones to barcode scanners are increasingly worried their industry is next on the Trump sanctions hit list, also after widespread reports that Beijing plans to in desperation ramp up its lagging domestic semiconductor development over the next decade as continued outside access to the most advanced chips looks increasingly in doubt.
Some are speaking out, attempting to make crystal clear to Washington that they are not puppets of either the Chinese state or PLA military. The country's largest and leading homegrown chipmaker, Semiconductor Manufacturing International Corp. (SMIC), is vehemently denying its technology is for military use after Reuters on Friday said Trump is mulling adding the publicly traded company to a US blacklist.
Via DigiTimes
The Shanghai-based company expressed that it is "in complete shock" over contents of the report, which said earlier this past week that "the Pentagon made a proposal to place SMIC on the entity list to the End User Committee, a panel led by the Commerce Department that also includes the State and Energy Departments and makes decisions about entity listings."
A follow-up official Semiconductor Manufacturing International statement said Saturday:
The company manufactures semiconductors and provides services solely for civilian and commercial end-users and end-uses. We have no relationship with the Chinese military.
The statement added, Any assumptions of the companys ties with the Chinese military are untrue statements and false accusations.
At moment there's an inter-agency review underway in Washington over whether to add the company to the list, which would immediately require American suppliers to obtain a specially approved license in order to ship materials to the company. If it goes on the list, SMIC would go the way of Huawei in facing huge hurdles and intense scrutiny any time it does business with Western companies.
Meanwhile some are counter-threatening various nuclear option scenarios, a rapid downward spiral:
US/China tit-4-tat horror.
"The suggestion from econ prof Li Daokui that China curb exports of medicines as a means of countering US economic curbs on Chinese access to semiconductor products is plainly wrong, dangerous..."https://t.co/2jIKw0CoJv Laurie Garrett (@Laurie_Garrett) September 1, 2020
Consider the dire warnings issued at the World Semiconductor Conference held in Nanjing at the end of August of the fragile early state of China's domestic capabilities.
Bloomberg relates of one of the more revealing conference moments:
The entire chip industry is too fragile to defend itself. We are at least 20 years behind comparing to Silicon Valley from scale and quality of talent to size of the ecosystem, said Wang Xuguang, chief executive officer of AINSTEC, a Suzhou-based company that develops 3D visual chips. If we can prosper (with the U.S.), thats the best, but if the situation doesnt allow this to happen, we need to think what we have on our hands.
Crucially, China remains the world's largest importer of chips, and will spend some $300 billion to import semiconductors this year.
The country still faces a huge technology gap in this area which Chinese developers have struggled to close over and ahead of more advanced industry rivals in the US, Japan, and Europe.
We have no relationship with the Chinese military.
I have a talking dog.
L
Chinese lie.
Even more so where there are $Billions on the table.
And I have a flying Easter pig.
China is a no-trust culture where human life essentially has as much value as a wheelbarrow full of mud.
Yeah, but he is a notorious liar.
Bring back National Semiconductor.
From another thread.
At Rapid Fire Arms, a gun shop along the main road in Sandy, the owner, Brian Coleman, has sold 4.5 million rounds of ammunition since March,
At one gun store, in 6 months.
L
You can feel it coming.
SMIC builds a LOT of chips for Intel.
This is a big deal.
And Intel is likely...complic...er...knowing.
What’s the spirit of the bayonet?
Kill! Kill! Kill!
Let’s not wait until the industry has been in China so long, that we lose the skilled workforce to build it back.
Kill their industry first.
The Chicoms lie almost as automatically as the Dems.
Wonder how they are making out...what with the floods, tariffs, theft of intellectual property and all.
Wonder how they are making out...what with the floods, tariffs, theft of intellectual property and all.
There is no such thing as an independent Chinese company. Their government / military have their hands in everything.
you dont get to be a big chinese technology (or any other) business in china without the ccp being involved in you
further xi just said there’s no difference or separation between the chinese people and the ccp
we take him at his word, therefore this company and all others, is the ccp
But seriously, the communist Chinese electronics industry is all teed up for a massive takedown.
US tech companies (like Apple) have pleaded that they need longer to shift to production out of China, because their more complex products need a more skilled workforce, and their specialized facilities take longer to construct and equip.
That’s true. But it does not take forever. They have had years of forewarning now, and push is coming to shove. The second half of the tariffs are overwhelmingly the electronics industry and finished consumer products (like Walmart stuff).
Drop those tariffs, block the technology transfers for National Security reasons, and impose the sanctions from violating the Hong Kong agreement; and we will see a concentrated economic collapse ripple through the Pearl River Delta.
I predicted that China would have a very bad economic year this year.
Check.
If President Trump is reelected, and holds the Senate, I predict that things will get worse for the ChiComs next year.
We don’t make the chips with lead.
We connect the chips to circuit boards with lead. Lead solders have fairly low melting points. So the connections can be made at a relatively low temp which won’t damage the chip or other components on the boards.
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