China Receives US Equipment To Make Advanced Chips Despite New Rules

schwit1 shares a report from Reuters: Chinese companies are buying up U.S. chipmaking equipment to make advanced semiconductors, despite a raft of new export curbs aimed at thwarting advances in the country's semiconductor industry, a report said on Tuesday. The 741 page annual report, released by the U.S.-China Economic and Security Review Commission, takes aim at the Biden administration's Oct. 2022 export curbs, which seek to bar Chinese chipmakers from getting U.S. chipmaking tools if they would be used to manufacture advanced chips at the 14 nanometer node or below. With the Commerce Department using the 14 nanometer restriction limit, 'importers are often able to purchase the equipment if they claim it is being used on an older production line, and with limited capacity for end-use inspections, it is difficult to verify the equipment is not being used to produce more advanced chips,' the report stated. According to the document, between January and August 2023, China imported $3.2 billion (RMB 23.5 billion) worth of semiconductor manufacturing machines from the Netherlands, a 96.1% increase over the $1.7 billion (RMB 12 billion) recorded over the same period in 2022. China's imports of semiconductor equipment from all countries totaled $13.8 billion (RMB 100 billion) over the first eight months of 2023, it added. The report does not outline a specific recommendation to address the gaps in the U.S. rules, but urges Congress to request an annual evaluation, to be completed within 6 months by the General Accountability Office and later made public, of the effectiveness of export controls on chipmaking equipment to China.

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