U.S. restricts Chinese chipmaker from buying American parts

U.S. restricts Chinese chipmaker from buying American parts

U.S. restricts Chinese chipmaker from buying American parts

The Commerce Department said it's blocking sales of American components to Fujian Jinhua Integrated Circuit Company Ltd, recalling a similar ban that brought telecoms gear giant ZTE Corp to a virtual standstill. The company should soon be completing a DRAM factory that could be the largest such factory in the world.

"When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security", Commerce Secretary Wilbur Ross said.

In a 2017 lawsuit, Micron said Jinhua partnered with Taiwan's United Microelectronics Corporation to steal U.S. trade secrets as a way to advance the Chinese company's DRAM chip production.

The Chinese chipmaker is the second major tech company after ZTE to have landed on the Trump administration export ban list -known as the Export Administration Regulations (EAR) Entity List.

But the restriction of exports to Fujian Jinhua actually relates to a much older problem: Accusations of Chinese businesses stealing American trade secrets to shift the balance sheets (and balance of power) in their favor.

The action is similar to a Commerce Department move that almost put Chinese telecommunications equipment company ZTE Corp out of business earlier this year by cutting it off from US suppliers.

China’s OnePlus launches smartphone in US
Hands On "We're not the cheeky upstart anymore", OnePlus told us at previews of the 6T flagship, its seventh, launched today. The OnePlus 6T runs on the latest Qualcomm Snapdragon 845 , with 6GB and 8GB RAM variants with 128GB and 256GB ROM variants.

Recently, the United States hindered China's ZTE from working with USA organizations after it discovered it had disregarded U.S. sanctions against Iran and North Korea.

The new restrictions mean U.S. firms will need special approval to export products intended for use by state-owned Fujian Jinhua Integrated Circuit Company, Ltd., according to a statement.

The two countries are already in a major tariff war with US duties in place on 250-billion dollars worth of Chinese goods and Chinese duties on 110 billion dollars of USA goods. "Placing [Fujian] Jinhua on the Entity List will limit its ability to threaten the supply chain for essential components in our military systems".

"This appears to be a dramatic expansion of the use of the entity list for economic purposes", he said, explaining that the entity list had traditionally been used to prevent imminent violations of USA export control laws.

The Fujian-based DRAM maker is nearing completion of a vast $5.7bn wafer-manufacturing plant, which will help drive the Made in China 2025 strategy of self-reliance.

Related news