USA vs. China: The chip war also includes software

USA vs. China: The chip war also includes software

Since Nancy Pelosi visited Taiwan, the differences between them have been United States of America And the China Turned it on again, and the market Semiconductors It is not exempt. First with the Trump presidency and then the Biden presidency, the United States has done everything in its power to stop China’s advances in the world of technology. Huawei, ZTE, and DJI are just the more famous names among the companies that have been axed by the infamous US blacklist, but the blocks didn’t stop there. Recently, the United States signed a Chips Law To reduce dependence on the Chinese electronic supply chain; Not to mention the implementation 4 . chip allianceAgreement with Taiwan, South Korea and Japan to strengthen cooperation in semiconductor manufacturing.

Not being able to compete at all, China has begun to gain market share in the world of chips: This is evidenced by SMIC, the country’s No. 1 chip maker which today holds 5% of the global market despite the US ban. Giants like TSMC and Samsung still have a long way to go, but it is undeniable that SMIC has managed to gain attention, especially as it has proven its ability to produce More advanced 7nm chips. If you move away from the world of chips, even in the field of memory, you become so competitive, that it pushes the United States to Force new blocks to be produced in China.

Here’s how the US is hitting the Chinese chip market again

In this regard, the US Department of Commerce’s Bureau of Industry and Security has imposed new export controls. the reason? always the same thing,”National Security”, referring to the Wassenaar Agreement signed in 1996 between 42 countries (excluding China) on the so-called dual-use technologies, that is, those technologies capable of performing both civilian and military functions. Among these, it is clear that we find semiconductors, which are an integral part of Consumer devices such as smartphones, tablets and even military devices.

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Specifically, you want the United States Banning the export of microchip development software to Chinaparticularly those of Gate-All-Around chips, the kind on which future generations of advanced nanometer chips (such as those with 3 And the 2 nm). US controls will also take care of exports of gallium oxide and diamond, which are better-performing materials than classic silicon needed to develop super-wideband semiconductors for military applications. All the moves that analysts see are likely to hit the Chinese electronics industry in a decisive fashion, which relies on US software from companies such as Cadence Design Systems, Synopsis and Mentor Graphics; Meanwhile, Chinese companies such as Empyrean Technology are trying to replace it, but the technology gap is still visible (we are talking about one or two generations ago).

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