China cooks covert chips, recruits global geeks to dodge US restrictions
(2023/08/24)
- Reference: 1692884053
- News link: https://www.theregister.co.uk/2023/08/24/china_us_tech_restrictions/
- Source link:
China is looking to hire engineers from other nations to bolster local chip production in the face of crippling US sanctions, with Huawei - one of the country's largest tech giants - said to be creating a network of covert semiconductor plants across the country.
As Washington tries to curtail China's access to advanced technology, Beijing continues to seek ways to advance its semiconductor ambitions, including discreetly reviving a past initiative to recruit top foreign-trained scientists to import much-needed expertise.
The new initiative, called Qiming, is overseen by the Ministry of Industry and Information Technology, according to [1]Reuters , which cites anonymous sources as well as national and local policy documents.
[2]
Qiming was set up to run in parallel with other recruitment initiatives from local and provincial authorities plus a government-backed hiring drive by Chinese chip companies themselves, which favor applicants trained at elite foreign institutions, the sources indicated.
[3]
[4]
In related news, Huawei is building out a covert network of semiconductor facilities across China to tackle the limitations of US sanctions that have [5]choked off its supply of chips.
According to the Semiconductor Industry Association (SIA), the trade body for US chipmakers, Huawei has taken possession at least two existing factories and is building a minimum of three others. SIA claims it is doing this under the names of other companies to conceal its involvement, as reported by [6]Bloomberg .
[7]
Doing so may allow Huawei to circumvent restrictions and indirectly purchase chipmaking equipment and other supplies that would otherwise be off-limits to the company. As a reminder, earlier this year, Washington was pushing for an [8]all-out block on any and all US technology export licenses to Huawei.
[9]Arm reveals just how vulnerable it is to trade war with China
[10]Hey Joe, those US CHIPS funds still coming? We kinda need them, says Micron
[11]UK clears Broadcom buying VMware, but deal yet to scale Great Regulatory Wall of China
[12]Beijing's silent treatment topples Tower Semiconductor merger with Intel
China is not alone in its scramble to secure semiconductor prowess. Chip manufacturers around the globe have taken to buying up secondhand semi manufacturing kit to keep pace with their expansion plans, [13]Nikkei Asia reports.
This used gear trend kicked off in the wake of the pandemic, when a shortage of chips became apparent as economies emerged from lockdown. Still, years later, these challenges persist despite the current downturn in the semiconductor industry.
The market for used semiconductor equipment has historically made up about 10 percent of all those sold, although it could be much larger. The problem is, it is difficult to track, and the true value could be close to $50 billion, said the CEO of Moov Technologies, an online platform for buying and selling secondhand chip gear.
China's technology companies can take heart over one US decision. Washington has agreed to extend a one-year exemption that allowed South Korean and Taiwanese semiconductor companies to continue exports of advanced chips and equipment to China.
[14]
The exemptions, [15]introduced last year , mean that Samsung, SK hynix, and TSMC can continue operations such as production of integrated circuits in China, despite the US Department of Commerce's restrictions on dealings with Chinese chip companies. The extension is understood to be aimed at preventing further disruption to the global semiconductor supply chain. ®
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[1] https://www.reuters.com/technology/china-quietly-recruits-overseas-chip-talent-us-tightens-curbs-2023-08-24/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2022/12/21/us_sanctions_huawei_chips/
[6] https://www.bloomberg.com/news/articles/2023-08-23/huawei-building-secret-chip-plants-in-china-to-bypass-us-sanctions-group-warns
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2023/01/31/huawei_us_exports_ban/
[9] https://www.theregister.com/2023/08/23/china_arm_tradewar/
[10] https://www.theregister.com/2023/08/22/micron_chips_funds/
[11] https://www.theregister.com/2023/08/21/uk_clears_broadcom_vmware/
[12] https://www.theregister.com/2023/08/16/intel_tower_deal_crumbles/
[13] https://asia.nikkei.com/Business/Tech/Semiconductors/Demand-for-used-chip-equipment-surging-since-COVID-Moov-CEO
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2022/10/13/sk_hynix_china_chip_reprieve/
[16] https://whitepapers.theregister.com/
As Washington tries to curtail China's access to advanced technology, Beijing continues to seek ways to advance its semiconductor ambitions, including discreetly reviving a past initiative to recruit top foreign-trained scientists to import much-needed expertise.
The new initiative, called Qiming, is overseen by the Ministry of Industry and Information Technology, according to [1]Reuters , which cites anonymous sources as well as national and local policy documents.
[2]
Qiming was set up to run in parallel with other recruitment initiatives from local and provincial authorities plus a government-backed hiring drive by Chinese chip companies themselves, which favor applicants trained at elite foreign institutions, the sources indicated.
[3]
[4]
In related news, Huawei is building out a covert network of semiconductor facilities across China to tackle the limitations of US sanctions that have [5]choked off its supply of chips.
According to the Semiconductor Industry Association (SIA), the trade body for US chipmakers, Huawei has taken possession at least two existing factories and is building a minimum of three others. SIA claims it is doing this under the names of other companies to conceal its involvement, as reported by [6]Bloomberg .
[7]
Doing so may allow Huawei to circumvent restrictions and indirectly purchase chipmaking equipment and other supplies that would otherwise be off-limits to the company. As a reminder, earlier this year, Washington was pushing for an [8]all-out block on any and all US technology export licenses to Huawei.
[9]Arm reveals just how vulnerable it is to trade war with China
[10]Hey Joe, those US CHIPS funds still coming? We kinda need them, says Micron
[11]UK clears Broadcom buying VMware, but deal yet to scale Great Regulatory Wall of China
[12]Beijing's silent treatment topples Tower Semiconductor merger with Intel
China is not alone in its scramble to secure semiconductor prowess. Chip manufacturers around the globe have taken to buying up secondhand semi manufacturing kit to keep pace with their expansion plans, [13]Nikkei Asia reports.
This used gear trend kicked off in the wake of the pandemic, when a shortage of chips became apparent as economies emerged from lockdown. Still, years later, these challenges persist despite the current downturn in the semiconductor industry.
The market for used semiconductor equipment has historically made up about 10 percent of all those sold, although it could be much larger. The problem is, it is difficult to track, and the true value could be close to $50 billion, said the CEO of Moov Technologies, an online platform for buying and selling secondhand chip gear.
China's technology companies can take heart over one US decision. Washington has agreed to extend a one-year exemption that allowed South Korean and Taiwanese semiconductor companies to continue exports of advanced chips and equipment to China.
[14]
The exemptions, [15]introduced last year , mean that Samsung, SK hynix, and TSMC can continue operations such as production of integrated circuits in China, despite the US Department of Commerce's restrictions on dealings with Chinese chip companies. The extension is understood to be aimed at preventing further disruption to the global semiconductor supply chain. ®
Get our [16]Tech Resources
[1] https://www.reuters.com/technology/china-quietly-recruits-overseas-chip-talent-us-tightens-curbs-2023-08-24/
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://www.theregister.com/2022/12/21/us_sanctions_huawei_chips/
[6] https://www.bloomberg.com/news/articles/2023-08-23/huawei-building-secret-chip-plants-in-china-to-bypass-us-sanctions-group-warns
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2023/01/31/huawei_us_exports_ban/
[9] https://www.theregister.com/2023/08/23/china_arm_tradewar/
[10] https://www.theregister.com/2023/08/22/micron_chips_funds/
[11] https://www.theregister.com/2023/08/21/uk_clears_broadcom_vmware/
[12] https://www.theregister.com/2023/08/16/intel_tower_deal_crumbles/
[13] https://asia.nikkei.com/Business/Tech/Semiconductors/Demand-for-used-chip-equipment-surging-since-COVID-Moov-CEO
[14] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZOd@odU0D4IbQ-6EyPdatQAAA5g&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[15] https://www.theregister.com/2022/10/13/sk_hynix_china_chip_reprieve/
[16] https://whitepapers.theregister.com/
Re: Unexpected consequence ?
Doctor Syntax
Unexpected? Who didn't see this coming? Other than successive US governments.
Re: Unexpected consequence ?
amanfromMars 1
Probably it is a certain inevitability, alain williams, and much sooner than was never before imagined possible too.
It is a truly unfortunate and unedifying, self-destructive trait that there is an unpleasant abiding systemic arrogance in Western leaderships that presuppose the East incapable of superior leading advancement without their virtual aid and practical assistance.
However, notwithstanding that, methinks a much greater fear for the West to tie themselves up in knots over and run around like headless chickens to fail to prevent is the secure covert and clandestine Eastern application of stealthy operational software programs/insider projects in chips vital to Western national, international and internetional security ...... and which they might realise are active but which they can do absolutely nothing about because of the untold damage removal of the access vehicle would present.
Unexpected consequence ?
Will an unexpected consequence of Western policy be that China will develop chip manufacturing expertise that is on a par with that achieved by machines from ASML and the ability to design them on a par with Intel, AMD, ARM, ... ?
At that point China will point two fingers at us and ship chips to BRICS & other nations at a price that undercuts what the West can make them at.