US Semiconductor Pressure Sparks 'Crisis'... China Holds Public-Private Meeting

Chinese Semiconductor Industry Voices Complaints to Government

Chinese President Xi Jinping [Photo by Yonhap News]

[Asia Economy Reporter Kim Pyeonghwa] As China refuses to give up its semiconductor ambitions despite U.S. sanctions, concerns have emerged within the local industry. There are crisis remarks suggesting that the entire Chinese semiconductor industry could be shaken by the U.S. sanctions.

According to Bloomberg on the 20th (local time), China's Ministry of Industry and Information Technology (MIIT) held a private meeting last week with executives from local semiconductor-related companies such as Yangtze Memory Technology (YMTC) and Sugon Information Industry. The meeting was arranged to assess the damage to each company following the U.S. announcement of semiconductor equipment export restrictions.

Bloomberg, citing sources, reported that Chinese companies expressed various difficulties during the meeting. The impact goes beyond a simple national conflict and could seriously harm the overall Chinese semiconductor sector.

A representative case is Biren (壁?) Technology, a Chinese AI semiconductor company that attended the meeting. Although Biren was recognized with a corporate valuation of $2.7 billion after launching a general-purpose graphics processing unit (GPU) in August, Bloomberg explained that the U.S. sanctions have dealt a significant blow to its business.

MIIT officials present at the meeting proposed to generate sufficient local demand to prevent damage to related companies. However, since no direct countermeasures from the Chinese government have been announced, local companies continue to demand practical solutions.

Earlier, on the 7th, the U.S. announced measures banning the export of semiconductor equipment to Chinese companies producing DRAM below 18 nanometers (nm), NAND flash with 128 layers or more, and logic semiconductors at 14 nm. The intention is to block advanced semiconductor production attempts in China. The U.S. has already blocked exports of AI-use GPUs and semiconductor electronic design automation (EDA) tools used in 3 nm processes to China.

Following the U.S. government's firm stance, attempts by local semiconductor equipment companies to exit China are also continuing. According to the semiconductor industry and multiple foreign media, U.S. semiconductor manufacturers such as KLA, Lam Research, and Applied Materials have recently taken steps such as withdrawing employees dispatched to China.

Despite these U.S. sanctions, China continues to emphasize technological self-reliance daily. Chinese President Xi Jinping stressed at the opening report of the 20th National Congress of the Communist Party of China held in Beijing on the 16th (local time) that "efforts must be concentrated on overcoming fundamental scientific and technological challenges." Shenzhen City announced a semiconductor industry development plan this month, promising various subsidies to related companies.

This content was produced with the assistance of AI translation services.