US can unliterally apply secondary sanctions to all firms trading with Chinese semiconductors firm like SMIC etc. pretty sure all non-US firms would compile, it is not a choice whether ASML can still sell to China. But whether US will do this or not is another question.
Chinese semiconductor industry
- Thread starter Hendrik_2000
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That sentence alone tells me whoever wrote this has nothing useful to say.
Can they? How much is the accessible US market and products worth compared to the Chinese one? Surely this won't be yet another own goal.
US can do anything it wants. ASML would no longer have access to US dollars (not just US markets). cant even sell any EUV to anyone due to it uses US technology. but this would have far reaching consequences.
There is always cost for every policy. US already is in high inflation environment and probably will be in recession next year. US's goal right now is to freeze Chinese chip at 14nm while ramping up US based fab. IMO, I think that's very ambitious goal already. If US decide to push all sanctions all the time, it will push US economy and world economy even slower growth and even higher inflation environment. Decoupling is not cost free proposition.
The could mark the beginning of the end of many of US alliances, overreaching policies could force allies to abandon the dollar in favor of Euros for example and could force non US companies to use even less US products at the cost of American jobs.
The best example I have is how the overreaching policies of the department of defense created the ITAR-Free phenomenon, as US own allies move on from using US components.
Especially someone paid to do misinformation, the much ado about nothing, as usual coming from an unofficial sources BUT hey I'm writing for Tom's Hardware therefore what I published is legit
Russian Newspaper Reports 40% Failure Rate for Chinese Microchips
Bypublished about 6 hours ago
(Image credit: Skopp (China), public domain (Russia))
Russian tech firms have noticed something strange about shipments of chips they’ve been receiving from Chinese manufacturers. According to a story in (opens in new tab), a Russian daily newspaper devoted to politics and business, translated and reported by (opens in new tab), up to 40% of the Chinese chips are turning out to be defective.
This represents a 1,900% increase in the failure rate, and while we couldn’t possibly suggest the two things are linked, Kommersant notes that before the invasion of Ukraine, the dud rate stood at 2%. The newspaper, which is privately owned by pro-Putin billionaire Alisher Usmanov (above) and released its first issue in January 1990, quotes an anonymous source in its story, laying the blame on both the Covid-19 pandemic and the economic sanctions more recently imposed on Russia for hurting its supply chains and forcing it to import gray-market semiconductors in the first place.
Given that many modern devices -- and, just as importantly, items of military hardware -- require many different semiconductor products, even a failure rate of 2% is bad. Having 40% of chips delivered in a non-functional state means it’s basically impossible to make anything without wasting significant time and effort testing everything first.
Kommersant -- which means The Businessman -- claims that sanctions have led to major import businesses abandoning Russia, leaving manufacturers there with no choice but to use unauthorized suppliers whose customer service perhaps leaves something to be desired compared to official channels. The Russian firms also have a lack of experience in checking out both suppliers and products before placing a large order.
February this year saw Russian premier Vladimir Putin and Chinese president Xi Jinping declare their countries had a ‘friendship without limits’ with ‘no forbidden areas’ for cooperation. Beijing has, however, (opens in new tab) (using extremely diplomatic language) that it disapproves of Russian hostilities toward Ukraine, calling on Putin to pursue negotiations and abstaining from a UN resolution condemning the attack rather than voting against it.
The Russian Ministry of Industry and Trade told Kommersant that it had not received any information about an increase in the proportion of defective components.
The US can certainly do whatever it wants, however countries and entities have the choice of minimizing their exposure if the costs become too great. There is an opportunity cost to everything, if the costs of being exposed to the US outweighs your benefits and other opportunities, entities can make decisions to insulate themselves, as another member has pointed out
The US expects OUS companies to follow their lead and take the hit for the team, just like they did to their companies. Unfortunately for them, not every country, even those allied to them are that stupid. What we are seeing now are those unintended consequences, oops I guess should've consulted your industry before you rolled those regulations out. OUS companies like Murata and ASML can/or making the choice to build redundancy into their operations to ensure that US can't choke them off. If the rewards of the Chinese market are enticing enough, they can recoup the cost of those redundancies and more which is why they are taking those steps. This weakens US leverage even further because once those are in place, if not already there is nothing the US can threaten them with, only the governments of their jurisdiction can. Why do you think it's always been the US pressing the Dutch government to restrict ASML for DUVi, and not doing it themselves via extra-territorial regulations? Imho, based on their recent actions if they thought they could choke of DUVi from ASML through US inputs I think they would've done it by now.
pretty lazy article in my opinion.
Also they are confusing lithography which is printing of the patterns to be etched in a layer of photoresist with actual etching. An area in which Naura and AMEC are really good, lithography is the area that is lacking not etching.
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