Dmitri Koudachov’s Post

There is a big hole in US semiconductor restrictions and DoD is going to see a huge impact due to it's reliance on legacy chips. "A big reason for the surge: there are no trade restrictions on 'mature chips,' or chips that utilize 28nm or older process technology. The U.S. government purposefully left these chips out of its sanctions to ensure supply chain resistance — these older chips are used extensively in a range of important devices, such as basic electronics (e.g. toasters, phones, medical equipment) and cars, and disrupting the supply chain could cause global issues. Also, the U.S. government determined that these chips do not pose a threat to national security (at least, not the way newer chips do)"

Tensions between the US, China, and Taiwan are causing a ripple effect in the chip industry. Taiwanese semiconductor companies, like King Yuan Electronics (KYEC), are pulling back from China. KYEC, a major player in chip assembly and testing, recently sold its stake in a Chinese subsidiary and announced its exit from the mainland market. This move reflects a broader shift for KYEC. They're prioritizing investment in Taiwan's stable environment to capture opportunities in AI and high-performance computing (HPC). The "chip war" uncertainty is a key motivator, according to analysts at DigiTimes. While China is ramping up chip production facilities, the testing and packaging sector could still see growth there. However, US restrictions on technology complicate matters for Taiwanese companies operating in China. As the industry grapples with geopolitical issues and fierce competition, it's likely KYEC won't be the last to adjust its strategy. We'll see if other Taiwanese chipmakers follow suit and prioritize their home turf. #usa #china #taiwan #usban #sanctions #chips #kyec #chipmakers #semiconductor #semiconductors #semiconductorindustry #semiconductormanufacturing #technology #technologynews

Russia is planning to invest over 240 billion rubles ($2.54 billion) into 110 R&D projects aimed at developing domestic semiconductor manufacturing equipment and materials, according to a report from CNews. The goal, spearheaded by the Russian Ministry of Industry and Trade and the International Scientific and Technical Center of Electronic Technology (MIET), is to reduce reliance on foreign equipment, with a target of 70% removal by 2030. Despite sanctions from the US and UK since the 2022 Ukraine invasion, Russia’s chip-making industry, while described as “small” and “technologically backward” by the American Enterprise Institute (AEI), continues to function. The AEI report noted that 88% of Russia’s chip supply in early 2023 came from China. US lawmakers are responding with stricter measures. In June 2024, a bipartisan bill sought to restrict US companies from purchasing equipment from entities tied to Russia, while the Biden administration banned exports of certain NVIDIA and AMD GPUs to Middle Eastern countries, amid concerns over sanction evasion. Thanks again to DatacenterDynamics for the full article with more background and insights click the source link in the comments below 💡 🙏👇 #Semiconductors #TechSanctions #ChipIndustry #RussiaTech #ChinaSemiconductors #USPolicy #GlobalTech #CONNECT #COLLABORATE #COMMUNITY

How is SMIC doing the 5nm Technology?

On the chip wars: “China's leading foundry SMIC … is actively expanding its 12-inch wafer production lines to meet the production needs of Huawei's 7nm and upcoming 5nm chips, supported by government industrial policies and large customer orders from Huawei. … “SMIC estimates a 2% quarter-on-quarter revenue increase for the first quarter of 2024, reaching approximately US$1.71 billion, surpassing the market expectation of US$1.67 billion. This suggests that the US sanctions have not severely impacted the company's revenue. “What surprises outsiders the most is SMIC's breakthrough in process technology despite US technology blockades. SMIC has invested heavily to advance its process technology to the 7-nanometer node and is moving towards 5-nanometer and even 3-nanometer technology.” https://lnkd.in/gRki3-hD #chipwars #chips #smic #china #usa #tech

🌟 **Breaking News in Semiconductor Industry:** 🌟 🔍 **Key Highlights:** - **King Yuan Electronics (KYEC)**, a prominent Taiwanese chip tester, has made headlines by selling its entire stake in a Chinese manufacturing hub. - The move is attributed to the ongoing semiconductor sanctions, adding fuel to the global chip shortage crisis. - The decision underscores the intensifying tensions between Taiwan and China, impacting the dynamics of the semiconductor market. 📉 **Implications and Insights:** - **Impact on Supply Chain:** The divestment signals a potential disruption in the semiconductor supply chain, exacerbating the existing shortage. - **Geopolitical Dynamics:** It reflects the broader geopolitical tensions between Taiwan and China, with ramifications for global tech trade. - **Business Strategy:** KYEC's strategic shift underscores the complex considerations faced by semiconductor companies amidst geopolitical uncertainties. 💡 **What's Next?** - How do you think this move will influence the semiconductor industry's landscape in the near future? - What strategies should semiconductor companies adopt to mitigate geopolitical risks and ensure supply chain resilience? Share your thoughts below! 🚀 #Semiconductor #SupplyChain #Geopolitics #TechIndustry #Discussion 📢 Join our VLSI Connect News channel on Telegram: https://lnkd.in/gk4gyWvt 📰 Stay updated with VLSI Connect News on LinkedIn: https://lnkd.in/g5aYa3Cp 🔗 Explore more on our website: https://vlsiconnect.com/ 🎧 Listen to our Daily news on Spotify: https://lnkd.in/gUGv4GhP https://lnkd.in/gXHbSvEq

Is Intel's CEO, Pat Gelsinger, looking forward to China successfully evading Washington's export controls as a way to maintain China market share? His quote from public remarks at Computex 2024: "Because of the technology export restrictions on things like EUV, we see that the attractiveness of global products and Intel products will continue to be high because there will be sort of a floor that it'll be difficult for local semiconductor manufacturers in China to move through. As a result, as we continue to go below two nanometers and beyond, there'll be an attractiveness for Intel products in the China market. And I believe, as a result, we'll continue to have a good market opportunity for us," The full article: https://lnkd.in/g6KrTMbC

In addition to the increased #export #restrictions on 23 #cutting-edge #semiconductor #manufacturing technologies in 2023, rumors suggest that further tightening on 4 additional #semiconductor or quantum computing-related technologies is on the horizon! Notably, besides #China, this move may further impact its major trading partners, including #SouthKorea, #Singapore, & #Taiwan.

Despite export controls, U.S. chipmakers find China to be a crucial market for their semiconductor products. Read more: https://lnkd.in/diQYPsiC #semiconductorindustry #USChinaTradeWar #exportcontrols #chipmakers #technologynews #geopolitical #marketpriorities #technologicaledge

𝙃𝙤𝙬 𝙎𝙈𝙄𝘾 𝙖𝙣𝙙 𝙃𝙪𝙖𝙬𝙚𝙞 𝘿𝙚𝙛𝙞𝙚𝙙 𝙐𝙎 𝙎𝙖𝙣𝙘𝙩𝙞𝙤𝙣𝙨 𝙩𝙤 𝘼𝙙𝙫𝙖𝙣𝙘𝙚 𝘾𝙝𝙞𝙣𝙖'𝙨 𝙏𝙚𝙘𝙝 𝙎𝙚𝙘𝙩𝙤𝙧 Despite stringent US sanctions aimed at restricting China’s access to advanced technology, Semiconductor Manufacturing International Corporation (SMIC) and Huawei have made significant strides that challenge the effectiveness of these restrictions. The sanctions sought to limit China’s access to cutting-edge chip manufacturing and critical 5G technology, aiming to stifle Huawei’s and SMIC’s competitive abilities on a global scale. However, Huawei’s launch of the Mate 60 Pro, equipped with a highly advanced 7nm chip reportedly produced by SMIC, demonstrated that both companies have found ways to circumvent some of these limitations. SMIC, China's leading semiconductor manufacturer, has been critical in enabling Huawei to move forward with advanced chip production. Although SMIC itself is limited by restrictions on acquiring certain equipment for 7nm and below processes, it has managed to adapt existing technologies to produce more sophisticated chips than expected. This breakthrough highlights the company's capability to innovate within restricted parameters, enabling domestic alternatives to emerge in China’s semiconductor industry despite US controls. Huawei’s recent achievements also underscore its ability to innovate independently. The Mate 60 Pro not only signals a technical milestone but also symbolizes a significant step toward technological self-reliance. Huawei’s persistent R&D investments and ability to develop proprietary technologies have strengthened its position, helping the company and China’s tech industry remain competitive on the global stage despite the sanctions. ___________________________________________________ 𝚃𝚑𝚒𝚜 𝚙𝚛𝚘𝚐𝚛𝚎𝚜𝚜 𝚑𝚊𝚜 𝚙𝚛𝚘𝚖𝚙𝚝𝚎𝚍 𝚌𝚘𝚗𝚌𝚎𝚛𝚗𝚜 𝚒𝚗 𝚝𝚑𝚎 𝚄𝚂 𝚊𝚗𝚍 𝚊𝚖𝚘𝚗𝚐 𝚒𝚝𝚜 𝚊𝚕𝚕𝚒𝚎𝚜 𝚊𝚋𝚘𝚞𝚝 𝚝𝚑𝚎 𝚕𝚘𝚗𝚐-𝚝𝚎𝚛𝚖 𝚎𝚏𝚏𝚎𝚌𝚝𝚒𝚟𝚎𝚗𝚎𝚜𝚜 𝚘𝚏 𝚝𝚎𝚌𝚑𝚗𝚘𝚕𝚘𝚐𝚢 𝚎𝚡𝚙𝚘𝚛𝚝 𝚛𝚎𝚜𝚝𝚛𝚒𝚌𝚝𝚒𝚘𝚗𝚜. ___________________________________________________ 📝 𝘠𝘰𝘦𝘭𝘪𝘢𝘯𝘢 𝘈𝘪 .