Dec 09, 2024 19:00:00

China's largest DRAM manufacturer CXMT has been removed from the US blacklist due to opposition from Japanese companies

On December 2, 2024, the US Department of Commerce's Bureau of Industry and Security (BIS) imposed

an export ban on China for 24 types of chip manufacturing equipment and three categories of software essential for semiconductor development. In addition, 140 Chinese companies were added to a 'blacklist' that prohibits them from accessing products and tools containing American technology without the approval of the US government. However, this blacklist does not include Chinese DRAM manufacturer CXMT , and it is believed that pressure from Japan was behind this.

Chip war: US exempts some Chinese firms from curbs in concession to Japan, sources say | South China Morning Post
https://www.scmp.com/tech/tech-war/article/3289594/chip-war-us-exempts-some-chinese-firms-curbs-concession-japan-sources-say

Chinese chip firms say they can withstand new US export curbs | Reuters

https://www.reuters.com/technology/chinese-chip-firms-say-they-can-withstand-new-us-export-curbs-2024-12-03/

Due to suspicions that 'China may be trying to use supercomputing and AI to develop weapons and decrypt codes,' BIS published the 'Interim Final Rule (IFR) to Strengthen Export Control Regulations for Semiconductor-Related Items' in October 2022. This rule adds companies such as Cheung Kong Memory to the ' Entity List ,' a trade restriction list issued by BIS.

The United States is cracking down on semiconductor exports to China due to suspicions that China will use AI and supercomputers to develop weapons and decrypt codes.

Furthermore, on December 2, 2024, BIS announced a series of rules aimed at curbing China's ability to manufacture chips that can be used for next-generation advanced weapons systems and military-use AI and supercomputing. The rules implemented export restrictions to China on 24 types of advanced chip manufacturing equipment used in etching, deposition, lithography, ion implantation, etc., and three types of software tools for manufacturing chips, and added a total of 140 Chinese chip manufacturing companies, tool companies, and investment companies, including Naura Technology Group , that are deemed to pose a risk to the national security of the United States and its allies to the Entity List.

The United States tightens export controls on high-bandwidth memory (HBM) due to concerns about China's military use of AI, adding 140 Chinese companies to the Entity List - GIGAZINE

However, the published entity list did not include some chip development companies, including CXMT. The fact that CXMT was not added to the entity list came as a big surprise to those involved. It is believed that some Japanese companies lobbied for CXMT's removal from the entity list.

Tokyo-based Tokyo Electron develops, manufactures, and sells semiconductor manufacturing equipment, and is one of the world's largest manufacturers of semiconductor manufacturing equipment, boasting the top domestic market share and the third largest global market share as of 2021. Tokyo Electron also sells semiconductor manufacturing equipment to Chinese companies, including CXMT.

According to an anonymous source, the BIS had initially considered adding 11 companies, including CXMT, to the Entity List, but received requests from companies such as Tokyo Electron to 'reverse the addition to the Entity List,' and so the inclusion of CXMT on the Entity List was postponed.

CXMT has not commented on this report.