Is it? I'm not surprised if think tankers argue to include Big AI model like GPT3 as munitions next
Chinese semiconductor industry
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China accelerates domestic EDA innovation, replacement to fight growing US tech blockade
By Global Times Published: Oct 11, 2022 03:23 PM
An employee showcases a semiconductor integrated circuit at an industry expo. Photo: VCG
Shenzhen, South China's Guangdong Province and Shanghai plan to encourage domestic enterprises and research institutions to use domestically-developed electronic design automation (EDA) with government subsidies of up to 10 million yuan ($1.39 million), as the country aims for core technology breakthrough and replacement in the sector that the US is recklessly pushing for a decoupling.
Shenzhen will grant subsidies worth no more than 70 percent of the expenditure to enterprises and research institutions that buy domestically-made EDA tools, with as much as 10 million yuan a year, according to a document addressing the high-quality development of the city's semiconductor industry that is open for public comment until November 8.
Meanwhile, subsidies of no more than 50 percent of the expenditure will be given to enterprises and institutions that rent such EDA equipment, with no more than 5 million yuan a year, the document outlines.
EDA is a type of electronic computer-aided design tool that is vital for the production of next-generation artificial intelligence chips.
The document also calls for promoting the localization of the whole manufacturing processes for EDA tools used for analog, digital and radio-frequency ICs, while vowing support for the research and development of next-generation EDA tools.
Shanghai recently released the same policy, offering subsidies worth no more than 50 percent of the expenditure for IC enterprises and innovation platforms that buy home-developed EDAs. In addition, Shanghai is encouraging companies to conduct testing of self-developed IC equipment, materials and EDAs, providing subsidies worth no more than 50 percent of their insurance premium.
The two cities' move came as China has been ramping up efforts to strive for core technological breakthroughs in the semiconductor sector and accelerate domestic replacement amid the US' continuous push for "tech decoupling". In August, which imposes restrictions on the export of four technologies, including EDA.
According to CCID Consulting, the Chinese market has been dominated by foreign EDA suppliers for a long time, including US firm Synopsys, Cadence and Germany-based Siemens. The three industrial multinationals account for a combined market share of 77 percent in China.
With surge in demand for domestically-made EDAs, local enterprises have seen fast development. Domestic leading EDA operator and solutions provider Empyrean Technology said publicly to its shareholders that it aims to fill the EDA gap and accelerate EDA localization so as to support the sustainable growth of Chinese semiconductor industry.
Even they have doubts about constitutionality of this measure: "It will be very tough for them if the U.S. can really enforce and execute this new regulation."
For sure this regulation will be challenged in court.
In the first three quarters, the highest forecasted increase in net profit exceeded 170%, and NAURA still fell by the limit for two consecutive days
Jiwei.com news, at noon on October 11, North Huachuang announced that it is expected to achieve revenue of 9.444 billion yuan to 10.444 billion yuan in the first three quarters, an increase of 52.98% to 69.18% year-on-year; it is expected to achieve a net profit of 1.55 billion yuan to 1.79 billion yuan. , an increase of 136.16%-172.62% over the same period of the previous year.
Among them, in the third quarter, the estimated revenue is 4 billion yuan to 5 billion yuan, a year-on-year increase of 55.94%-94.93%; the net profit is expected to be 750 million yuan to 970 million yuan, a year-on-year increase of 149.75%-223.01%.
North Huachuang pointed out that in the first three quarters of 2022, the downstream market of the company's electronic process equipment and electronic components business has strong demand and full orders. The company actively took various measures to realize the effective operation of production and supply chain, and ensured the timely delivery of customer orders, and the company's operating performance maintained continuous growth.
More stringent things have been successfully done in the name of national security.
Overall this is a very rational move for the US to make, as they clearly are seeing semiconductor mastery as one of the key prerequisites of national power in economic, military and scientific domains, and thus national security and hegemony.
Breaking a couple of eggs or a few tens of thousands would be well worth the price.
I also do not expect this will be the most stringent of measures the US will put in either. Going forwards, I expect attempts for more far reaching measures and more severe punishments to be enacted as they become more sensitive (or one may argue, desperate).
and usually end up hurting more than benefiting, nothing comes free in life and some things end up costing more than others, like the failure of the China initiative. The U.S has been losing its appeal as a talent destination currently because a multitude of issues. Policies to harm people in the name of national security it could make that appeal lost even greater. It could make international companies and even US companies reconsider hiring US citizens, it could accelerate the outsourcing of US jobs. Is has been accelerating right now. Basically the goverment has make their own citizens a liability for companies.
With this and FDPR the US on the way of making their semiconductor industry a national security minefield, an unappealing place with unreliable products, a place that some people may dont want to be and worst given the fact that the software industry and the financial industry has more appeal in the US than hard engineering.
But who I am telling a group of Harvard lawyers in Washington D.C that the best way to win a race is to run faster and not shooting yourself in the foot? They know better what it the best for their country, they know better than anyone else, they know better than the engineers, the scientist and the researchers.
Yes, is gonna get worse, as I said before the US is on a downward spiral towards full blown fascism, every single administration just set the bar even lower than the administration before. I am almost certain that Trump will win a second term in 2024 and if that happens this administration has set the bar so low for Republicans that god damn boys we are going to have a lot fun in the SinoDefenseForum with all the crap that will come.
Yes, US strategy is to try to delay and hinder Chinese advancement and innovation -- China's strategy is to try and speed up their own advancement and innovation.
There are some rather simple assumptions that underlie both nation's strategies and those assumptions are even diametrically opposed to each other. (Basically in terms of China's ability to advance and innovate at speed, and ability to do so domestically and so on)
Time will tell which of those sets of assumptions prove true.
But this is very vague, they're restricting export of advanced semiconductor to china, this law is very vague because anything below 10 nm is adnavned semiconductor so if they want they can deny chips for Chinese company who makes mobiles, laptop . They can cripple Chinese tech industry and various companies might vaporise out of thin air outside of china like what happened to huawei, I think Xiaomi and other Chinese companies will soon no longer be able to get chips.
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