The Taiwan Times
  • News
    • Asia
    • World
    • Opinion
  • Politics
  • Business
  • Technology
  • Entertainment
  • Sports
  • Health
    • COVID-19
  • Local Guides
    • Northern Taiwan
      • Keelung
      • Taipei
      • New Taipei
      • Taoyuan
      • Hsinchu
      • Miaoli
    • Central Taiwan
      • Taichung
      • Changhua
      • Yunlin
      • Nantou
    • Southern Taiwan
      • Chiayi
      • Tainan
      • Kaohsiung
      • Pingtung
    • Eastern Taiwan
      • Yilan
      • Hualien
      • Taitung
    • Outlying Islands
      • Kinmen
      • Penghu
The Taiwan Times The Taiwan Times
  • News
    • Asia
    • World
    • Opinion
  • Politics
  • Business
  • Technology
  • Entertainment
  • Sports
  • Health
    • COVID-19
  • Local Guides
    • Northern Taiwan
      • Keelung
      • Taipei
      • New Taipei
      • Taoyuan
      • Hsinchu
      • Miaoli
    • Central Taiwan
      • Taichung
      • Changhua
      • Yunlin
      • Nantou
    • Southern Taiwan
      • Chiayi
      • Tainan
      • Kaohsiung
      • Pingtung
    • Eastern Taiwan
      • Yilan
      • Hualien
      • Taitung
    • Outlying Islands
      • Kinmen
      • Penghu
FOLLOW US
59K
2K
21K
  • Asia
  • Business
  • China
  • Technology

US Restricts Exports To China: Targets Semiconductor Makers

  • 2 minute read
Total
0
Shares
Share 3
Tweet 0
Pin it 0
Up next
Ghazal Omid Pt.2 – Islam Today: Iran, China, & The United States
    Published on 26 December 2020
    Author
    Amy Wu
    Tags
    • Beijing,
    • China,
    • Donald Trump,
    • Hong Kong,
    • India,
    • Joe Biden,
    • New Delhi,
    • semiconductors,
    • SMIC,
    • superpower,
    • tech,
    • tech news,
    • technology,
    • USA,
    • Washington,
    • Xi Jinping
    Share article
    The post has been shared by 3 people.
    Facebook 3
    Twitter 0
    Pinterest 0
    Mail 0

    New Delhi: Washington has announced that it will require US exporters to apply for a license before they can sell to Semiconductor Manufacturing International Corporation (SMIC) of China.

    The US government claims that the chipmaker can use its tech to help China modernize its armed forces.

    SMIC & (SIUIF) says it has no relationship with the Chinese military.

    The company in its statement acknowledged that while the restrictions are unlikely to hurt its short-term operations, its loftier goals are in doubt.

    The new US rules will have “a material adverse effect” on its ability to develop highly advanced chips, it said.

    That’s because Washington has said that any request to export tech needed to produce super advanced chips “will be subject to a presumption of denial” – a major problem for SMIC, which uses American-made software and equipment to create its chips. (The US Department of Commerce defined “super advanced” as any semiconductor smaller than 10 nanometres)

    “We think this is one of many blows to China, limiting its rise as a tech superpower,” said Phelix Lee, an equity analyst, in a research note published earlier this month that anticipated US export restrictions.

    “Although Chinese substitutes have emerged in parts of the supply chain, their specifications are typically two to three generations behind,” he pointed out in a separate report published in September.

    It’s clear that investors are worried about the company’s future. SMIC’s Hong Kong-listed shares were down 0.9% to close at 18.96 Hong Kong dollars ($2.50) on Tuesday, their lowest value in more than two months. They’ve lost 4.5% since the US ban was announced.

    Chinese President – Xi Jinping

    The pressure from Washington also highlights how important – and challenging – it will be for China to find a solution to SMIC’s woes.

    Lee said he expects China could create more policies supportive of the chipmaking sector. He suggested the government could provide grants for chip research or offer tax breaks for semiconductor equipment.

    China is already starting to do that: Earlier this month, the government unveiled rules that will allow the country’s chipmakers to be exempt from corporate income taxes for several years if they meet certain requirements. And Chinese President Xi Jinping recently said at an economic conference that the country needs to “strengthen China’s strategic tech power” so it can break a “foreign stranglehold” on key tech, according to state news agency Xinhua.

    And analysts at Bernstein wrote in a Sunday research note that they expect China to bail out SMIC, if necessary.

    Official portrait of Vice President Joe Biden in his West Wing Office at the White House, Jan. 10, 2013. (Official White House Photo by David Lienemann).

    Beijing will have an opportunity to reset relations next month, when President-elect Joe Biden takes office. Observers have said they expect Biden to strike a more diplomatic tone than President Donald Trump, though tensions likely won’t evaporate completely.

    This article first appeared in the NFA Post and is republished with permission.

    You May Also Like

    Taiwan to Impose Health Declaration Forms on All Visitors

    Those failing to accurately do so face a fine of up to NT$150,000
    • Mark Buckton
    • February 12, 2020
    • 6 shares
      6
      0
      0
    • 1 minute read

    NSC says that Taiwan will lose one or two more allies to China by 2020

    According to a new report by the National Security Council, Taiwan’s lose
    • Kw Lin
    • September 26, 2019
    • 2 minute read

    China says protests in Hong Kong took place due to billionaire Li Ka-shing

    China has been playing the blame game for a long time regarding
    • Kw Lin
    • October 5, 2019
    • 2 minute read

    Taiwan ranked 4th in the world when it comes to net wealth

    We have seen that there has been a lot of talk about
    • Kw Lin
    • September 25, 2019
    • 2 minute read
    YouTube
    View on YouTube
    Follow Us
    Facebook 59K Likes
    Twitter 2K Followers
    Instagram 21K Followers
    Categories
    Recent Posts
      • Opinion
      • Technology
      Will Meta Project Cambria headset replace your laptop?
      • Yanqiu Li
      • Business
      • Opinion
      A global stock market crash
      • Tianqi Shi
    • Azovstal plant
      • News
      • World
      Russia vouches for complete victory at Azovstal plant
      • David Meyers
      • Education
      • News
      Covid surge in Taiwan: pandemic impacts on career planning for students
      • Hedy Yang
    Search
    Advertisement

    Will Meta Project Cambria headset replace your laptop?

    In Meta’s recent Connect Conference, Mark Zuckerberg released a video in which
    • Yanqiu Li
    • 2 minute read

    A global stock market crash

    The U.S. and global stock markets fell for a sixth straight week
    • Tianqi Shi
    • 1 minute read
    Azovstal plant

    Russia vouches for complete victory at Azovstal plant

    Moscow officials stated that the last fighters defending the city’s Azovstal plant
    • David Meyers
    • 2 minute read

    Covid surge in Taiwan: pandemic impacts on career planning for students

    (The Taiwan Times) ― Taiwan faces its worst Covid-19 outbreak after the
    • Hedy Yang
    • 2 minute read
    The Taiwan Times
    59K
    2K
    21K
    • About Us
    • Contact Us
    • Meet The Team
    • Editorial Policy
    • Disclaimer
    • Privacy Policy
    • Support The Taiwan Times
    • Sitemap
    台灣國際報 The Taiwan Times
    Taiwan's Trusted Journal - We ♥ Taiwan
    Copyright © The Taiwan Times All Rights Reserved