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China’s goal of producing 70 percent of the semiconductors it needs by 2025 has just been pushed further out of reach by the Trump administration.
As we first reported, the US Department of Commerce has said that exports to China’s largest chipmaker, Semiconductor Manufacturing International Corporation, will require licenses for specific products. It said exports to SMIC posed an “unacceptable risk” of being diverted to “military end use,” according to a copy of a letter seen by the FT.
This means that SMIC will have a more difficult time sourcing chip manufacturing equipment for its production lines from US suppliers such as Applied Materials, Lam Research and KLA. Another key supplier, the Dutch company ASML, has no longer been able to obtain a license to export to SMIC.
By one estimate, only about 16 percent of China’s semiconductor needs correspond to domestic production, and restricted access to equipment capable of making chips at the latest miniaturization “node” will inevitably make Chinese products high. range are more difficult to sell. Foreign.
While the US is making this a national security issue, the restrictions on SMICs that follow those imposed on Huawei are also clearly related to competitiveness, as the US is behind China in 5G and seeks to maintain its leadership in semiconductors that power our smartphones, computers and other devices.
The US chip industry has reason to worry: Equipment suppliers will lose business, Qualcomm chips are made by SMIC, and Nvidia is dependent on China’s approval for its deal to buy chip designer Arm.
For now, SMIC shares are taking the hit, slipping 7 percent on Monday’s news, while trade tensions between the United States and China are blamed for Japanese memory chip maker Kioxia postponing what would appear today. been Japan’s largest IPO this year.
The Internet of (five) things
1. Uber wins London appeal
Uber was granted a new 18-month license to operate in London after it convinced magistrates that it had addressed safety concerns raised by Transport for London, which had rejected a renewal. Uber still faces a ruling this fall from the UK Supreme Court on whether its drivers should be treated as employees rather than independent contractors.
2. TikTok warns the ban of applications in the US.
A federal judge has prevented the Trump administration from forcing Apple and Google to remove the short video app from their stores in the US, just hours before they were required to implement a ban. TikTok successfully argued that this would have infringed on free speech. John Thornhill says President Trump has given his preliminary blessing to what amounts to a loopy deal and a failed political raid that gives Oracle and Walmart a combined 20 percent stake in TikTok.
Daily bulletin
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3. Nikola truck ‘designed in Croatia’
The original design of Nikola’s flagship truck was purchased by founder Trevor Milton from a designer in Croatia, according to two people with knowledge of the matter, despite the company’s claims in a 2018 lawsuit that the vehicle was initially designed by Milton “in his basement.” . The truck, the Nikola One, is at the center of a $ 2 billion lawsuit with Tesla, in which Nikola alleges his rival infringed on his patents.
4. The China Auto Show Emphasizes
China’s auto market, the world’s largest, has seen a remarkable post-Covid recovery, according to manufacturers. They’re betting on electric vehicles at the annual auto show. Sales represent only 5 percent of the market today, but the government has set a target of 25 percent by 2025. Meanwhile, Japan is a leader in battery innovation, according to patent applications.
5. UK among the cyber superpowers
The UK has developed an offensive cyber capability that can “degrade, disrupt and even destroy” the critical infrastructure of its enemies, the Strategic Command chief said, at a briefing in a Ministry’s cold war-era nuclear bunker. defense. Britain ranks third, behind the United States and China, according to a new international cyber power index.
Tech week ahead
Monday: The next round of hearings in the extradition process of HuaweiMeng Wanzhou CFO starts in Canada. The United States wants Ms. Meng to face trial on charges that include fraud related to the alleged violation of US sanctions against Iran, allegations that she denies.
Tuesday: NASA will launch a new toilet into space.
Wednesday: Two more Silicon Valley tech companies go public, with a data analytics specialist Palantir and to-do list service for companies Asana opting for direct listings. Google will hold its Pixel 5 smartphone launch event. Jack Ma will officially step down from the board of Alibaba Last year, Ma resigned as chairman of the board and handed over the job to Daniel Zhang, who also became CEO.
Thursday: The Next Web’s annual two-day technology conference, often held in Amsterdam, takes place online.
Tech Tools – Roku Streambar
Roku TVs, offering an integrated version of the channel streaming service rather than a separate set-top box or “stick,” arrived in the UK last Christmas. Now there is another way to have an integrated experience, with the introduction today of the £ 130 Roku Streambar, a soundbar that includes the service. Streaming over an HDMI connection is up to 4K HDR quality with Dolby Audio sound from all four speakers and an included voice-enabled remote control. Techcrunch reports an update in the US at the same time for its $ 99 Ultra box, with up to 50 percent more wireless range and the addition of Bluetooth support, meaning you’ll be able to pair your smartphone with the device. so that you can stream music or other audio to the TV.
