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US chips are unsafe, claims China

by on04 December 2024


Gloves off in renewed tech tensions

China’s top industry associations have banded together to declare US semiconductor products “no longer safe.”

Four prominent Chinese industry groups issued a joint warning, urging domestic firms to replace US chips with locally produced alternatives.

This rare show of unity from China’s industrial titans comes hot on the heels of Washington’s latest crackdown—the third in three years—targeting China’s semiconductor industry.

The US extended export restrictions to 140 companies, including Naura Technology Group, a major player in chip equipment manufacturing.

The Chinese are expecting things to get worse when US President-elect Donald Trump returns to the White House in January. Trump is known for his love of tariffs (and his Twitter account). He promises to “get tough” on Chinese imports and has already sent ripples through international markets.

Tom Nunlist, associate director at research firm Trivium China said: “China had been moving quite slowly or carefully in terms of retaliating against moves by the United States, but it seems pretty clear that now the gloves are off.”

While Nvidia, AMD, and Intel continue to enjoy a foothold in the Chinese market despite US export controls, the joint warnings could signal stormy waters ahead. The Internet Society of China minced no words on its official WeChat account, advising companies to “think carefully” before purchasing US chips.

The group also urged businesses to explore partnerships with non-US chipmakers and emphasised the use of domestic alternatives. It claimed that US export restrictions have already caused “Substantial harm” to the development of China’s internet industry.

The China Association of Communication Enterprises suggested the government scrutinise the reliability of the supply chain for critical information infrastructure. Though specifics were absent, the warnings followed a familiar playbook. Remember Micron? The U.S. memory chipmaker faced cybersecurity reviews and a sales ban in key Chinese industries last year, resulting in a ding to its revenue.

Last modified on 04 December 2024
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