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Biden To Hit China With Broader Curbs on US Chip and Tool Exports (reuters.com) 34

The Biden administration plans next month to broaden curbs on U.S shipments to China of semiconductors used for artificial intelligence and chipmaking tools, Reuters reported Monday, citing several people familiar with the matter. From the report: The Commerce Department intends to publish new regulations based on restrictions communicated in letters earlier this year to three U.S. companies -- KLA, Lam Research and Applied Materials, the people said, speaking on the condition of anonymity. The plan for new rules has not been previously reported. The letters, which the companies publicly acknowledged, forbade them from exporting chipmaking equipment to Chinese factories that produce advanced semiconductors with sub-14 nanometer processes unless the sellers obtain Commerce Department licenses. The rules would also codify restrictions in Commerce Department letters sent to Nvidia and Advanced Micro Devices last month instructing them to halt shipments of several artificial intelligence computing chips to China unless they obtain licenses. Further reading: Banned US AI Chips in High Demand at Chinese State Institutes.
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Biden To Hit China With Broader Curbs on US Chip and Tool Exports

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  • Ok (Score:2, Interesting)

    by Grokew ( 8384065 )

    "unless the sellers obtain Commerce Department licenses."

    So just pretending to do something?

    In reality, what they will accomplish is to push China to come up with their own solution. And they will more than likely succeed, even if it takes a long time (like with the ball point pen XD).

    Stop distracting the people by creating "enemies" and start focusing on solving the problesm we already have.

    • Stop distracting the people by creating "enemies"

      Too late. That's a problem we already have.

    • by khchung ( 462899 )

      "unless the sellers obtain Commerce Department licenses."

      So just pretending to do something?

      It means only big companies that paid enough campaign contributions (aka bribes) will get those licenses.

    • China is incapable of copying an Applied tool. They have tried and flat out failed at it for the last 15 years. China beat Amat in solar because it is basic tech and cheap labor but are not able to for what they call the HVP tools.
      • Just keep believing that. Necessity is the mother of invention. When they could get applied products, necessity was not in play. I mean who woulda thunk Iran would become a major supplier of drones to Russia and its allies?
        • Necessity may be driven by need but to understand what it takes to build a KLA, Lam Tel or Amat tool is something of a whole-another level. There is a good reason this industry in the west has consolidated to the degree that it has and how the tools are so incredibly expensive. The value add proposal alone is enough for any one with deeply backed pocketbooks to want to get in, but the problem remains is experience, talent, and an organically developed technology that is almost impossible to copy.
  • Rules, regulations, duties and tariffs are less than zero sum games (ie both sides lose). Change my mind.

    • No, I agree. Tariffs are conversations between national leaders. People on the street in China aren't going to say "Oh crap, Americans are charging $20/gross more on these plastic screen TV's." and subsequently clamoring for Xi to change his un-capitalist ways! In reality, they're just going to pay more to buy american stuff, and we're going to pay more to buy theirs, which will destroy demand for both. Good solution, pols!
    • Rules, regulations, duties and tariffs are less than zero sum games (ie both sides lose). Change my mind.

      Want to know the real definition of rules, regulations, duties and tariffs? Greed lobbying to prevent competition.

      It's certainly not a "zero sum" game for those wanting to secure profit streams.. Government didn't come up with these limits for shits and giggles. It's what the Donor Class wants and paid for.

      Think about it.

      • The same donor class that H Ross Perot warned us about regarding his "giant sucking sound" of jobs leaving the US..... Heads they win, tails we lose

    • by Tablizer ( 95088 ) on Monday September 12, 2022 @04:44PM (#62875753) Journal

      It depends, there's tradeoffs.

      If commodity chips are necessary for other goods, then crisis disruptions on those other products would be reduced if chips are local or have a decent alternative local source.

      And Chinese companies may be put back doors in advanced chips to bring down our infrastructure in case of conflict.

      In other words, there's more tied to chips than just the cost of chips. If average chip cost were the only factor, you'd have a point.

    • by rsilvergun ( 571051 ) on Monday September 12, 2022 @04:46PM (#62875759)
      China seems to be doing pretty damn well with them. They protect the shit out of their businesses. Their people not so much but their businesses oh yeah they get a lot of protection.

      Of course in order for any of this to work you have to already have industry to protect and with the help of right-wing billionaires we shipped all our industry over to China. We broke the unions who were the only ones that could have stopped it. So now Biden has to spend the next 6 years laying the groundwork to undo the damage done. And while he was there for that damage he was at least a pro union guy the whole time.
  • The Chinese will get round chips only.

  • by felixrising ( 1135205 ) on Monday September 12, 2022 @10:45PM (#62876375)
    From the land of the free market, where only the fittest businesses should survive and those that fail to innovate should fail... that is capitalism in a free market economy... except apparently when other countries businesses are surpassing your own, then it's protectionism. Do what we say, and not what we do!!!!
    • by AmiMoJo ( 196126 )

      You can't warn. They just write you off as some kind of CCP shill, or a troll who hates America.

      5G, automotive batteries, what's next?

  • This administration seems intent at aggravating the source for all of the EVs that are going to save the planet if they can just get everyone to buy one.
    The reality is likely much different, political posturing with toothless restrictions to try and make it seem as if the administration is being tough on the PRC.
    In the end they only hurt the US and drive the PRC to replace what little technology they buy from the US.

  • Let me sum up: Trump levied tariffs ostensibly to offset China ripping off the US. Biden now blocks exports of US product to China. One of these things brought money into the US. The other does not.

You are always doing something marginal when the boss drops by your desk.

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