Chinese Chip Giants Stockpiling Raw Materials to Brace for Potential US Sanctions!

According to media reports, China’s largest chip manufacturer, SMIC, has placed significant orders for raw materials from its Taiwanese partners. This move is believed to be a response to potential stricter sanctions from the United States, as well as to ensure a stable supply for its 7nm chip production. SMIC’s stockpiling of materials may be a proactive measure to prepare for potential restrictions or to meet increased customer demand. It is speculated that Huawei’s high expectations for its Mate 60 series smartphones could be a driving factor behind this stockpiling, as the company aims to ship 20 million units this year and expects sales to increase in the future. Chinese chip manufacturers, including SMIC, have been importing chip manufacturing equipment from various countries to anticipate potential sanctions and restrictions. The Biden administration is reportedly planning to update regulations that restrict the export of chips and chip manufacturing equipment to China, which could further strain US-China relations. The anticipated regulations aim to tighten export restrictions and address loopholes in previous bans. The Office of Management and Budget (OMB) of the United States has published a regulation related to anticipated restrictions on chip manufacturing equipment shipments to China, indicating progress in the update of export control provisions. The Biden administration is reportedly planning to release accompanying regulations that update export restrictions on high-end chips used for artificial intelligence simultaneously. “China Focus“ is a YouTube channel created to provide current events and pop culture headlines from you can get to know a more real China through my video. ｜ #ChineseNews #chips #ChinaFocus Thanks for your watching and subscribing.