In response to US semiconductor export restrictions, Chinese companies outsource assembly of high-performance GPUs to Malaysian companies, while Japanese semiconductor companies offset the impact by exporting less advanced semiconductor manufacturing equipment

The United States strictly restricts the export of semiconductor-related products to China. China aims to produce high-performance chips while circumventing regulations, and several Chinese companies are outsourcing the assembly of high-performance chips to Malaysian companies, and products from Japanese semiconductor companies are being sold to Chinese companies. It has been reported that an increasing number of cases are being adopted.

Exclusive: Chinese firms look to Malaysia for assembly of high-end chips, sources say | Reuters
https://www.reuters.com/technology/chinese-firms-look-malaysia-assembly-high-end-chips-sources-say-2023-12-17/

Tokyo Electron says China is snapping up its less advanced chip tools amid export controls
https://www.ft.com/content/186d3704-e54a-4e6a-9d0b-4fc0bf967d5f

The United States recognizes China's AI development as a military threat and has severely restricted exports to China of high-performance chips and semiconductor manufacturing equipment that may be used in AI development. In September 2022, the United States will introduce a licensing system for semiconductor exports to China, restricting the products that can be exported. Furthermore, in October 2023, a new upper limit on the performance of semiconductors that can be exported was set, making it clear that China would continue to restrict exports to China.

The US tightens restrictions on AI chip exports to China, making it difficult to export NVIDIA chips - GIGAZINE

Export restrictions by the United States extend not only to completed chips but also to semiconductor manufacturing equipment. According to a report from Reuters, it has been confirmed that a Chinese semiconductor company is in discussions to outsource part of its GPU production process to a Malaysian company. A person involved in the discussion said, ``Chinese chip design companies and Malaysian semiconductor companies have a good relationship.Malaysia is perceived as having low prices, an experienced workforce, and sophisticated equipment. Therefore, Chinese companies see Malaysian companies as a promising option.'

In addition, John Chia, chairman of Unisem, a semiconductor company based in Malaysia, said, ``Many chip design companies in China are facing export restrictions and supply chain problems, and many chip design companies in China are facing export restrictions and supply chain problems. 'We are coming to Malaysia with the aim of securing new sources of supply,' he said, acknowledging that business with Chinese companies is increasing.

Furthermore, Japan is also working with the United States to restrict exports to China, and Japanese semiconductor companies are now unable to export cutting-edge semiconductor manufacturing equipment to China. For this reason, Tokyo Electron is expanding exports of ``non-state-of-the-art semiconductor manufacturing equipment''. Junko Takagi, head of IR at Tokyo Electron, said, ``Of course there was an impact from export restrictions, but the impact was much smaller than expected,'' emphasizing that the impact of export restrictions was kept to a minimum. I am.