Text Assassin. A few days ago, a number of U.S. ** told ** that Biden is increasing pressure on Chinese chipmakers to prevent China from importing more advanced chips and manufacturing facilities. The reason for the impatience of the United States is that China's chip industry is developing rapidly. U.S. low-end chips have been squeezed out of the Chinese market, and U.S. companies have suffered heavy losses.
Obviously, the United States has learned the lessons of the failure of the chip war against China and is laying out in advance in an attempt to slow down China's development in the field of high-end chips. However, according to the Global Times, the United States' crackdown on China's chip industry, including the means that SMIC can take, has basically run out.
Reuters said in a report that the U.S. Department of Commerce recently sent letters to a number of U.S. companies with ties to SMIC, asking them to suspend their licenses to export goods to SMIC, and asking them to "prohibit the export of chip manufacturing materials and components to SMIC."
Biden's increased pressure on SMIC will only lead to significant losses for American companies due to unsalable products. Reuters specifically mentioned in the report: China's Huawei recently launched a ** mobile phone with advanced chips, which shocked the world. Therefore, the relevant industries in the United States are very worried, believing that the recent restrictions introduced by the United States will weaken the sales ability of American companies in China, prompting China to introduce new regulations to reduce its dependence on American chips.
In this regard, the Global Times quoted experts as saying that "from this point of view, the United States has intensified its clamping on Chinese companies, indicating that they have no will." Reuters revealed in the report that Biden's increase in pressure on SMIC is not due to the interests of American companies, but because the pressure on the Republican Party on China hawks is rising.
In other words, the U.S. Department of Commerce has stepped up pressure on Chinese companies to please the Republican hawks on China. It's just that Republicans are happy with the introduction of new regulations from the U.S. Department of Commerce, but the U.S. chip industry has suffered because of it. Nvidia CEO Jensen Huang recently lamented that last quarter, Nvidia's sales in the Chinese market were only $1.9 billion, equivalent to 9% of total sales, far lower than the previous quarter's 22%. The reason for this is the cessation of shipments to China.
The U.S. chip export control policy to China is the main culprit for this consequence. Not long ago, in order to bypass the sanctions of the United States, Nvidia customized a castrated version of the chip to be sold in China, but almost no one cared about it. This is because more and more Chinese companies are using their own high-tech chip products.
According to the Global Times, Nvidia listed Huawei as its biggest competitor in a number of fields, including artificial intelligence (AI) chips. Industry observers say the move highlights the rapid rise in the technological strength of Chinese companies, driven by increased R&D investment and demand in the local market.
Chinese analysts say it sends a stark warning to Washington and other U.S. tech companies that the U.S. relentless crackdown on China's tech industry is ineffective. The year-long lockdown has backfired, leading to more Chinese competitors. In the coming years, Chinese companies will take billions of dollars of market share away from American technology companies.
According to Reuters, Nvidia, which has been hit hard in China's chip market, is testing two ** chips with Chinese customers in order to ensure its dominance in the Chinese market, and expects these chips to "serve the Chinese market." Nvidia realized that if their chips did not improve their technical content, they would not be able to sell in the Chinese market.
Prior to this, some U.S. media announced that the U.S. Department of Commerce would expand the scope of export controls on chips to China to the field of non-cutting-edge traditional chips. In this regard, the U.S. Department of Commerce ** Kendler said that "there is no such thing". This means that in the list of embargoed sales by the U.S. Department of Commerce, only "export restrictions on cutting-edge chips to China" remain. As a result, Nvidia quickly launched two new custom chips to the Chinese market, hoping to make another profit before China's self-produced high-end chips became popular.
Only the Chinese market is the largest in the world, and the loss of the Chinese market is irreparable. We look forward to the emergence of more "Huawei" and more "SMIC" in China.