On August 27, according to Reuters reports, the United States is considering new restrictions on the export of semiconductor manufacturing equipment and related software tools, lasers, sensors and other technologies to prevent them from falling into the hands of American adversaries such as China!

In a post on the government’s website on Wednesday, the Commerce Department said it was seeking public comment on how to define a new technology as it determined “whether there are specific underlying technologies that warrant stricter export controls.”

The Trump administration has specifically restricted technology exports to Chinese companies, especially Huawei, on national security grounds. The Trump administration has said these emerging technologies could be used by the militaries of adversaries such as “China, Russia or Venezuela.”

Equipment manufacturing is the foundation of the semiconductor industry and the key to completing wafer manufacturing, packaging and testing, and realizing the advancement of integrated circuit technology. The market for semiconductor manufacturing equipment has always been dominated by the United States. However, now the United States is trying to restrict the export of semiconductor manufacturing equipment, which will undoubtedly harm the interests of relevant US companies. Taking the sales of semiconductor components as an example, the interests of some US companies have been damaged due to the US restricting the export of domestic related products.

According to the Global Electronic Design and Manufacturing Supply Chain Industry Association (SEMI), various “wrong” measures implemented in the United States in recent times have caused related companies in the country to lose 17 million US dollars (about 117 million yuan). SEMI pointed out that if the United States continues to implement stricter semiconductor export controls, it will ultimately harm only its own national interests, harm the semiconductor industry, and bring huge uncertainty to the global semiconductor supply chain.

To make matters worse, semiconductor manufacturing has gradually become a shortcoming of the US industrial chain. According to the Observer.com report on August 19, although there are many powerful chip design companies in the United States, such as Qualcomm, Broadcom, Xilinx, etc., but these companies only manufacture about 10% of chips in the United States, and most of them ‘s chip production relies on chip foundries in Asia.

To make matters worse, the CEO of US technology giant Intel said on July 23 that in terms of chip manufacturing, the company may choose to outsource and may abandon the integrated device manufacturing (IDM) model that has been implemented for many years. In this regard, foreign media commented that,

The era of American semiconductor hegemony may come to an end, and pure-play foundries such as TSMC will become the new industry leaders.


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