Joe Biden Blocks, Chinese Giant Makes Big Profits Tech – 14 hours ago

Jakarta, CNBC Indonesia – The Joe Biden administration set rules that expand and tighten restrictions on exports of advanced chips and chip manufacturing tools from the United States (US) to China.

The aim is to prevent the development of artificial intelligence (AI) technology in China which is feared will increase the military strength of the Bamboo Curtain country.

However, this latest regulation turns out to be profitable for local chip component manufacturers in China. Orders from foundries in China have increased in recent months.

This shows that Chinese President Xi Jinping’s dream of developing an independent semiconductor industry without depending on the US is increasingly visible.

Domestic equipment manufacturers, such as Naura and AMEC, won a much larger proportion of tenders from Chinese foundries than in previous years.

Chipmakers are racing to replace foreign-made equipment with domestic alternatives, according to reports Reutersquoted Thursday (19/10/2023).

Nearly half, or 47.25%, of all machine equipment tenders conducted by Chinese foundries from January to August 2023 were won by local manufacturers, according to an analysis of 182 tenders conducted by Huatai Securities last month.

From July to August 2023, 62% was won by Chinese suppliers, compared to just 36.3% in March to April, the analyst firm said.

Chinese industry seems to have accepted the consequences of the blockade carried out by the US government. They moved quickly to deal with tighter blocking later in the day.

However, the Chinese Minister of Foreign Affairs (Menlu) in his official statement this week said that the Joe Biden administration’s new regulations violated the principles of competition and business fairness.

“Before the US sanctions were imposed, Chinese manufacturers had started using machines from local suppliers. However, the capacity was only being used for experiments,” said an industry source.

“Currently, Chinese manufacturers are starting to further test manufacturing equipment made in China. If they meet requirements, they will replace them all [alat dari luar negeri],” the source added.

AMEC and Naura are said to have received many orders from China’s largest chip manufacturers, namely SMIC and Hua Hong Semiconductor. AMEC, Naura, SMIC, and Hua Hong have not yet spoken out in response to this information.

[Gambas:Video CNBC]

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