The Chinese flag is displayed next to the “Made in China” mark that appears on a printed circuit board containing semiconductor chips, in this illustration taken on February 17, 2023.
Florence Lou | Reuters
This came after the US tightened export controls on advanced semiconductors and chipmaking tools to China in October last year, building on previous rules. Washington is concerned that Beijing may use these advanced chips in artificial intelligence and military applications.
“I wouldn’t be surprised if there are more (US restrictions) coming just because we’re still in the middle of this retaliatory treatment. And there are a lot of hawks in the United States who are really concerned about the Chinese military buildup,” he added. Dan Hutchison, vice president and chief researcher at TechInsights, said on CNBC’s Squawk Box Asia on Tuesday.
Beijing criticized the Dutch government’s move, urging the Netherlands to “adhere to an objective, fair position and market principles.”
China’s Ministry of Commerce said last week that the United States is using export controls as a tool, adding that it is “deeply concerned about the direct interference of the United States” in the issue of high-tech exports by Dutch companies to China.
“It’s further evidence that not only the US government, but also other Western countries like the Dutch government, will continue to escalate some of the restrictions that we’ve seen around both chipmaking equipment and also advanced semiconductors,” Chris Miller, author of Chip War, told Squawk. Box Asia on CNBC in early January.
In October, the United States banned sales of the A800 and H800 chipsets made by Nvidia specifically for the Chinese market.
Nvidia’s less powerful A800 and H800 chips were developed after the US government banned shipments of A100 and H100 chipsets – advanced graphics processing units sold to businesses – to China in August 2022.
With the (US) elections approaching and political tension in the Taiwan Strait continuing, it is difficult to envision a real rollback of the restrictions. If anything, I see more tightening.
Daniel Newman
Principal Analyst, Futurum Research
“With the (US) elections approaching and political tension in the Taiwan Strait continuing, it is difficult to envision a real rollback of restrictions,” Daniel Newman, principal analyst at Futurum Research, told CNBC. “If anything, I see further tightening.” . week.
China opposes Taiwan independence and has urged the United States to “stop arming Taiwan,” according to a statement issued on January 10.
Western efforts to contain China’s technological advances have prompted the economic giant to look to the self-reliance of its domestic companies.
Since 2019, the United States has imposed sanctions on Chinese technology companies such as Huawei and China’s largest chip maker SMIC, forcing Beijing to boost its domestic industry.
Revenues of China’s top 10 chip equipment makers rose 39% in the first half of 2023 from a year earlier, according to Shanghai-based CINNO Research.
“I think the short term provides an advantage for the West, but China will do everything it can to make sure it is not left out of the chip race,” Futrum’s Newman said.
China has traditionally relied on foreign companies for vital components.
After the Dutch government revoked ASML’s export license, Beijing no longer has access to some of the world’s most advanced chipmaking tools.
China has also been banned from importing ASML’s extreme ultraviolet lithography machines, which companies like Taiwan’s TSMC need to make the smallest, most advanced chips.