US sanctions on China are destroying global semiconductor ecosystem Chinese

US sanctions on China are destroying global semiconductor ecosystem, Chinese chipmakers say

Back in early October, US officials launched an initiative to expand export control rules that further limited China’s ability to develop its semiconductor industry. This week, representatives of the China Semiconductor Industry Association condemned attempts by the US, the Netherlands and Japan to cooperate in this direction.

    Image source: ASML

Image source: ASML

Recall that last month officials from the United States, the Netherlands and Japan held a meeting in Washington where a certain deal was struck and the details of the agreements reached are still being hushed up by the meeting participants. US authorities are believed to have urged their European and Japanese partners to better coordinate joint efforts to limit shipments of lithography equipment to China. In the case of Japanese suppliers, as mentioned above, a third of their total sales for 2022 came from the Chinese direction. Dutch ASML estimates its sales in China at about 14% of total sales in 2021, but this company controls about 90% of the global market for a certain line of lithographic equipment, so new restrictions could be painful for Chinese customers.

According to publication South China tomorrow post, the China Semiconductor Industry Association (CSIA) this week condemned the planned agreement between the US, the Netherlands and Japan. The organization, which brings together 744 companies, stated the following: “We strongly protest such actions that are destroying the global semiconductor ecosystem and condemn the unacceptable intrusion by governments and agencies.”. Organization members also called for greater support for globalization and opposition to attempts to destabilize supply and demand.

“We are against such measures that exclude the Chinese semiconductor industry from the global system of innovation and free market-oriented competition”, — added representatives of CSIA. At the end of January, representatives of the Chinese Ministry of Foreign Affairs condemned the actions of foreign counterparties and emphasized that the deal initiated by the USA not only harms all countries concerned, but also endangers the stability of the global supply chain for semiconductor components. In December last year, the Chinese authorities filed a complaint with the World Trade Organization about the United States’ actions. Even before the export restrictions were tightened in October, representatives of the Chinese association CSIA called on local companies to strengthen their independence from foreign technology and equipment. According to 2021 data, Chinese industry was only 24% able to self-supply with the necessary semiconductor components.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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