Semiconductor Industry Braces for U.S.-China Tech Cold War
Posted On 15/09/2020 07:30:58 by flystly

Semiconductor equipment manufacturers have largely remained silent as the U.S. and China escalate a technology cold war that could disrupt the IC chip market and further decouple the nations’ economies.To get more news about china industry research, you can visit official website.

In May, the U.S. tightened trade restrictions on China, requiring semiconductor manufacturers using U.S. equipment to obtain a special license to sell to companies, or “entities,” blacklisted by the United States. Chinese networking giant Huawei tops the U.S. entities list.

“The new controls are specific to Huawei and its affiliates and seek to impose a license requirement on the transfer to Huawei and its affiliates certain semiconductor designs and devices that are the direct products of U.S.-origin design software or U.S.-derived manufacturing tools,” according to a spokesperson for industry association SEMI. “They do not impose any new license requirements on U.S. software or manufacturing tools themselves.”

There are broader implications, though, for the equipment industry writ large. U.S. companies are already prohibited from selling sensitive technology to entities associated with the Chinese military (People’s Liberation Army) and/or government, and the new rules expand the scope of “military end-uses.”

All told, the U.S. export restrictions could dampen production-equipment sales to chip makers in China.

“[The export controls] may create a disincentive for the purchase of U.S.-origin equipment by placing a unique license requirement on the direct products of U.S.-origin equipment which does not apply to the direct products of equivalent equipment from other major trading partners,” added SEMI.

Leading equipment makers contacted for this article initially indicated they would weigh in on the new measures but have since reversed course or not responded to follow-up requests. Some are in pre-earnings quiet periods, but the topic is politically charged. The U.S. appears intent on blocking China’s access to technology that would advance the nation’s semiconductor aspirations.

Tags: Semiconductor Industry Braces For U.S.-China Tech Cold War


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