USA: Export ban on technologies for 3nm chip production

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usa export ban on technologies for 3nm chip production.jpg
usa export ban on technologies for 3nm chip production.jpg

China is not explicitly mentioned, but is obviously the target of the export ban. This should prevent 3nm chip production in the country in the future.

The United States formally bans the export of four technologies needed for semiconductor manufacturing. This is justified with the protection of goods that are “vital to national security”.

The rule (PDF), announced late last week by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) and effective Monday, bans the export of two ultra-wide bandgap semiconductor materials and some types of ECAD technology (Electronic Computer-Aided Design) and PGC technology (Pressure Gain Combustion).

The BIS said the semiconductor materials gallium oxide and diamond in particular will be subject to export controls as they can operate under more extreme temperature and voltage conditions. According to the authority, this also enables the materials to be used in weapons. ECAD software, in turn, comes in specialized forms that support GAAFETs (Gate-Allaround Field Effect Transistors), which are used to scale semiconductors to three nanometers and below. PGC technology also has “great potential” for ground and space applications, according to BIS.

“We protect the four technologies identified in today’s rule from nefarious end-use by conducting controls under a multilateral regime,” UK tech portal The Register quoted US Department of Commerce export administration official Thea D. Rozman as saying Kendler. “This rule demonstrates our continued commitment to enforcing export controls together with our international partners.”

The inclusion of these four technologies in export controls follows a May change in the way the BIS characterizes new and enabling technologies. In its announcement of the export ban, the BIS does not explicitly name any countries, but it seems clear that China is the target. Many of the sanctions imposed on foreign companies in recent years appear to be China-specific and part of the broader trade tensions between the two countries.

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In 2019, for example, former US President Donald Trump banned telecommunications transactions with companies in “opposing” countries, which should hit the Chinese Huawei group in particular. The US Department of Commerce declared in 2020 that US chip manufacturers would no longer be allowed to supply semiconductors to the world’s second largest smartphone manufacturer in China if they were based on software, technology and know-how from the US. China, in turn, banned foreign PCs and Windows from government agencies and state-owned companies at the beginning of May.

Chinese analysts claim the US export ban will have little short-term impact on China’s chip industry as China does not produce 3nm chips like those affected by the ban, The Register writes.

However, China certainly has ambitions to become a major power in semiconductor production. Beijing wants to use all its power to become more independent from other countries when it comes to semiconductors. SMIC, one of the leading Chinese chip manufacturers, has started producing chips using the 7nm process.

In the growing conflict with China, the US is trying to block the rising rival’s access to modern technology and the most advanced production facilities, thus making China’s technological catch-up more difficult. In addition, the USA want to cooperate more closely with Taiwan, Japan and South Korea in chip production. In addition, the US Senate has just approved a law on semiconductor production in the USA. This is intended to break dependencies on Asia and promote US semiconductor production. The now announced export ban fits into the picture.

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