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Why US is Finding it Hard to Stop China’s Microchip Advance

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The US banned the export of advanced chip-making equipment to China last week last week as part of its campaign to prevent Beijing from developing cutting-edge microchips.

The machines in question were DUV lithography machines manufactured by ASML in the Netherlands for semiconductor fabs such as Taiwan’s TSMC and Shanghai’s Semiconductor

International Corporation (SMIC). The US has been pressuring allies such as Japan and the Netherlands to significantly curtail China’s supply of equipment and raw materials needed to make advanced computer chips.

ASML had already planned to stop supplying DUV equipment to Chinese customers in January, particularly the 1980Di and 1980Fi versions.  However, the United States put pressure on Amsterdam to act days before the deadline.

This showed the determination of President Joe Biden’s administration to confront China.

However, according to respected industry experts and the US government’s own s assessment, the measures fall short.

CXMT, or ChangZin Memory Technologies, which makes DRAM memory chips, and SMIC are two Chinese companies that are at the forefront of Chinese companies that have been at the forefront of developing their advanced semiconductors.

Since 2018, the United States has used its financial and economic power in the global trade and banking system to prevent Chinese companies from buying equipment, chemicals, and software.

The US accuses them of collaborating with the People’s Liberation Army (PLA). Despite these precautions, Chinese Chinese companies have managed to keep pace with Moore’s Law.

Dylan Patel and his colleagues at Semi Analysis discovered SMIC’s 7nm chips in a bitcoin mining IC. integrated circuit for Bitcoin mining in 2022.

The tech world was stunned by this discovery. Washington is counting on its influence in the global semiconductor global semiconductor supply chain to prevent China from gaining the ability to manufacture semiconductors at 14 nanometres (nm) or higher nodes.

The US government admits that it has not been able to completely prevent Chinese companies from purchasing semiconductor tools and equipment.

The US-China Economic and Security Review Commission acknowledged in its most recent report that it remains difficult to track all equipment and raw and raw materials going to Chinese companies remains difficult.

The use of the same chemicals and tools in both 7nm and 28nm processes makes it difficult for exporters to comply with US restrictions.

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