Chinese semiconductor thread II
- Thread starter vincent
- Start date
IIRC, when the US first started using the Foreign Direct Product Rule to restrict sales by non-US companies to China, the restrictions initially only applied to items where US content is above certain threshold (25% ?). Many of the targeted non-US companies quickly updated their products to replace some US components with non-US ones to get under the initial FDPR threshold set by the US. As a result, the US had to lower the FDPR threshold to 0% for semiconductor equipment sales to China. Is my recollection correct?
I suspect one reason why the US is now giving FDPR exemptions to some non-US companies is because these companies are threatening to completely drop all their US suppliers and are very likely to succeed doing so if they tried.
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The "Pilot Development of High-Purity Silicon Carbide Materials" project was signed
On July 28, according to the official WeChat account of Chongqing Release, the 2024 International Frontier New Materials Conference and the 4th China (Chongqing) Graphene Industry Development Summit Forum opened in Chongqing on July 26. A project signing ceremony was held at the event site, and Chongqing Graphene Research Institute Co., Ltd. and Guoxunjing (Chongqing) Technology Co., Ltd. signed a contract for the "Pilot Development of High-Purity Silicon Carbide Materials" project.
According to the information, Guoxijing (Chongqing) Technology Co., Ltd. was established in January 2024 with a registered capital of RMB 3 million. Its business scope includes new material technology research and development, graphite and carbon product manufacturing and sales, electronic special material research and development, manufacturing and sales, etc. Chongqing Graphene Research Institute Co., Ltd. was established in June 2016. It focuses on the application of graphene materials, conducts key technology research and development and new product development, and has 6 laboratories including graphene water-based anti-corrosion coatings, graphene building materials, graphene new energy applications, graphene biomedicine, graphene sensors, and graphene modified coating new materials.
Banning software is ridiculous and done by people who really don't understand how things works, most of the core technologies in software development are open source and free to download.
The next phase of high percentage of growth will be Chinese sub-systems, parts and materials manufacturers. Than again, it will blowback to the stooges faces pretty nice because these companies are going to sell the products in the international market once they conquer the Chinese domestic market, in the near future AMAT, KLA and LAM will be buying Chinese components for their products even if they are not made in the mainland per se.
This might be a reaction to ASML telling them they won't follow sanctions if they are increased. They were quite open about this. Maybe they lobbied to maneuver to ensure monopoly.
It also wouldn't shock me if behind closed doors, ASML made clear that they will create de-Americanized versions of the machines for the Chinese market alone.
If bans are so effective why don't they just order Chinese companies to not do business with Chinese government or ban them from transacting in RMB? I mean don't they think USD and US market is supreme? See what happens.