America is losing the semiconductor battle to China, Beijing's Micron ban shows that other countries want no part of the US trade war

[beijingwalker]

America is losing the semiconductor battle to China​

Beijing's Micron ban shows that other countries want no part of the US trade war​

BY PHILIP PILKINGTON
Tuesday, 23
May 2023

The trade war continues to heat up, and now the boundaries are starting to be defined. On Sunday, the Chinese government announced that semiconductors from the American company Micron would be banned among operators of “critical infrastructure” in China. The ban could arguably have been worse — Beijing could have banned imports of the chips altogether — but the American company will still feel the pinch, given that it derives around 16% of its revenue from China and Hong Kong.

Shortly after the announcement, South Korea signalled that it would not do anything to prevent the Chinese buying chips from their companies as a substitute. Last month, the White House asked Seoul to prevent the American chips from being substituted, but South Korea shrugged it off, insisting that it was a matter for their companies to decide. Even if they wanted to, imposing such a ban would be difficult, with one industry leader pointing out to the Financial Times that “even if we increase our supply to Chinese customers, how can they examine all these deals individually and judge that the increased volume comes from us, replacing Micron’s?”

South Korea’s refusal to damage its companies to fulfil the desires of the D.C. foreign policy establishment shows that there are hard limits to Washington’s trade war. American strategists seem to assume that the products over which they are picking fights are not easily replaceable; that, in economics-speak, they are “non-fungible”. But, as with Russian crude oil, we are seeing the global market work its magic and arbitrage away any attempts at preventing trade.

The only way America can make its trade war work is to convince a substantial slice of the world economy to put in place similar restrictions to those being imposed by Washington. But as the Micron example shows, these restrictions bring with them counter-restrictions — and this grim cycle can quickly escalate, destroying the companies caught in its wake. Countries like South Korea are simply not interested in getting involved.

Meanwhile, the United States is still trying to revive diplomatic relations with the Chinese following Secretary of State Antony Blinken’s announcement that he was cancelling his trip to Beijing after the Americans shot down a Chinese balloon earlier this year. At the G7 meeting over the weekend, President Joe Biden referred to the incident as a row over a “silly balloon” and said that he expected diplomatic relations to thaw very soon. Washington has clearly realised that the Chinese are not willing to play ball with any attempt at a “hardline” diplomatic strategy.

This last year has produced a series of lessons for the US and its allies that, in a rapidly changing world, there are limits to their power, both hard and soft. China is not Iran, or even Russia. Trying to isolate the country economically and diplomatically is near-impossible, and may well end up isolating the country attempting to impose the measure. In the coming months, it seems increasingly likely that America will have to revise its China policy.

America is losing the semiconductor battle to China

The trade war continues to heat up, and now the boundaries are starting to be defined. On Sunday, the Chinese government announced that semiconductors from the American company Micron would be banned among operators of “critical infrastructure” in China. The ban could arguably have been worse —...

unherd.com

 

[Paji]

Lol. This is written by some left wing liberals . Difficult to take it seriously.

About UnHerd​

Mission Statement​

As you may have guessed from our strange spelling, UnHerd aims to do two things: to push back against the herd mentality with new and bold thinking, and to provide a platform for otherwise unheard ideas, people and places.

We think this approach is more needed than ever. Societies across the West are divided and stuck, and the established media is struggling to make sense of what’s happening. The governing ideologies of the past generation are too often either unquestioningly defended or rejected wholesale.

It’s easy and safe to be in one or other of these two camps – defensive liberal or angry reactionary - but UnHerd is trying to do something different, and harder.

We want to be bold enough to identify those things that have been lost, as well as gained, by the liberal world order of the past thirty years; but we strive to be always thoughtful rather than divisive.

We are not aligned with any political party, and the writers and ideas we are interested in come from both left and right traditions. But we instinctively believe that the way forward will be found through a shift of emphasis: towards community not just individualism, towards responsibilities as well as Rights, and towards meaning and virtue over shallow materialism.

Welcome to UnHerd. We hope you find something that makes you think again.

 

[beijingwalker]

Lol. This is written by some left wing liberals . Difficult to take it seriously.

About UnHerd​

Mission Statement​

As you may have guessed from our strange spelling, UnHerd aims to do two things: to push back against the herd mentality with new and bold thinking, and to provide a platform for otherwise unheard ideas, people and places.

We think this approach is more needed than ever. Societies across the West are divided and stuck, and the established media is struggling to make sense of what’s happening. The governing ideologies of the past generation are too often either unquestioningly defended or rejected wholesale.

It’s easy and safe to be in one or other of these two camps – defensive liberal or angry reactionary - but UnHerd is trying to do something different, and harder.

We want to be bold enough to identify those things that have been lost, as well as gained, by the liberal world order of the past thirty years; but we strive to be always thoughtful rather than divisive.

We are not aligned with any political party, and the writers and ideas we are interested in come from both left and right traditions. But we instinctively believe that the way forward will be found through a shift of emphasis: towards community not just individualism, towards responsibilities as well as Rights, and towards meaning and virtue over shallow materialism.

Welcome to UnHerd. We hope you find something that makes you think again.

So only right wing people can write and trustworthy? strange Indian mind at its finest.

 

[beijingwalker]

Micron Stock Tumbles as China Says Its Chips Are Security Risk

• China’s cyberspace agency probed the memory-chipmaker
• Move is retaliation for G-7 stance on China, US official says

WATCH: China has barred the operators of key infrastructure from buying Micron chips after they failed a security review. Source: Bloomberg

2023年5月22日 GMT+8 16:41

Micron Technology Inc.’s stock declined after China’s cyberspace regulator said that its products failed to pass a cybersecurity review, a move that jeopardized the company’s sales in a crucial market.

Beijing warned operators of key infrastructure against buying the company’s goods, saying it found “relatively serious” cybersecurity risks in Micron products sold in the country. The components caused “significant security risks to our critical information infrastructure supply chain,” which would affect national security, according to the statement from the Cyberspace Administration of China, or CAC.

Micron Drops After China Claims Its Chips Pose Security Risk

Micron Technology Inc.’s stock declined after China’s cyberspace regulator said that its products failed to pass a cybersecurity review, a move that jeopardized the company’s sales in a crucial market.

www.bloomberg.com

 

[Paji]

So only right wing people can write and trustworthy? strange Indian mind at its finest.

Well, some left wing media organisations like NY times, WaPo, CNN at least have some credibility. On the other hand, unheard is unheard of and their dreamy mission makes it difficult to put any credibility in their analysis on rigorous subjects liem economics and trade policy.

@ Admins, there is already a busy thread on Micron's ban in China. Please merge this one into that.

 

[beijingwalker]

Well, some left wing media organisations like NY times, WaPo, CNN at least have some credibility. On the other hand, unheard is unheard of and their dreamy mission makes it difficult to put any credibility in their analysis on rigorous subjects liem economics and trade policy.

The least trustworthy is the right wing western media and you don't even bother to take off your colored glasses for a moment, it shows how brainwashed you already are.

 

[etylo]

Looks like Micron got the deserved treatment in China now, read its dirty laundry in China:

https://min.news/en/news/c6bb5e22309e6b81d229132f096dd201.html

 

[Ali_Baba]

America is losing the semiconductor battle to China​

Beijing's Micron ban shows that other countries want no part of the US trade war​

BY PHILIP PILKINGTON
Tuesday, 23
May 2023

The trade war continues to heat up, and now the boundaries are starting to be defined. On Sunday, the Chinese government announced that semiconductors from the American company Micron would be banned among operators of “critical infrastructure” in China. The ban could arguably have been worse — Beijing could have banned imports of the chips altogether — but the American company will still feel the pinch, given that it derives around 16% of its revenue from China and Hong Kong.

Shortly after the announcement, South Korea signalled that it would not do anything to prevent the Chinese buying chips from their companies as a substitute. Last month, the White House asked Seoul to prevent the American chips from being substituted, but South Korea shrugged it off, insisting that it was a matter for their companies to decide. Even if they wanted to, imposing such a ban would be difficult, with one industry leader pointing out to the Financial Times that “even if we increase our supply to Chinese customers, how can they examine all these deals individually and judge that the increased volume comes from us, replacing Micron’s?”

South Korea’s refusal to damage its companies to fulfil the desires of the D.C. foreign policy establishment shows that there are hard limits to Washington’s trade war. American strategists seem to assume that the products over which they are picking fights are not easily replaceable; that, in economics-speak, they are “non-fungible”. But, as with Russian crude oil, we are seeing the global market work its magic and arbitrage away any attempts at preventing trade.

The only way America can make its trade war work is to convince a substantial slice of the world economy to put in place similar restrictions to those being imposed by Washington. But as the Micron example shows, these restrictions bring with them counter-restrictions — and this grim cycle can quickly escalate, destroying the companies caught in its wake. Countries like South Korea are simply not interested in getting involved.

Meanwhile, the United States is still trying to revive diplomatic relations with the Chinese following Secretary of State Antony Blinken’s announcement that he was cancelling his trip to Beijing after the Americans shot down a Chinese balloon earlier this year. At the G7 meeting over the weekend, President Joe Biden referred to the incident as a row over a “silly balloon” and said that he expected diplomatic relations to thaw very soon. Washington has clearly realised that the Chinese are not willing to play ball with any attempt at a “hardline” diplomatic strategy.

This last year has produced a series of lessons for the US and its allies that, in a rapidly changing world, there are limits to their power, both hard and soft. China is not Iran, or even Russia. Trying to isolate the country economically and diplomatically is near-impossible, and may well end up isolating the country attempting to impose the measure. In the coming months, it seems increasingly likely that America will have to revise its China policy.

America is losing the semiconductor battle to China

The trade war continues to heat up, and now the boundaries are starting to be defined. On Sunday, the Chinese government announced that semiconductors from the American company Micron would be banned among operators of “critical infrastructure” in China. The ban could arguably have been worse —...

unherd.com

America is losing the semiconductor battle to China​

Beijing's Micron ban shows that other countries want no part of the US trade war​

BY PHILIP PILKINGTON
Tuesday, 23
May 2023

The trade war continues to heat up, and now the boundaries are starting to be defined. On Sunday, the Chinese government announced that semiconductors from the American company Micron would be banned among operators of “critical infrastructure” in China. The ban could arguably have been worse — Beijing could have banned imports of the chips altogether — but the American company will still feel the pinch, given that it derives around 16% of its revenue from China and Hong Kong.

Shortly after the announcement, South Korea signalled that it would not do anything to prevent the Chinese buying chips from their companies as a substitute. Last month, the White House asked Seoul to prevent the American chips from being substituted, but South Korea shrugged it off, insisting that it was a matter for their companies to decide. Even if they wanted to, imposing such a ban would be difficult, with one industry leader pointing out to the Financial Times that “even if we increase our supply to Chinese customers, how can they examine all these deals individually and judge that the increased volume comes from us, replacing Micron’s?”

South Korea’s refusal to damage its companies to fulfil the desires of the D.C. foreign policy establishment shows that there are hard limits to Washington’s trade war. American strategists seem to assume that the products over which they are picking fights are not easily replaceable; that, in economics-speak, they are “non-fungible”. But, as with Russian crude oil, we are seeing the global market work its magic and arbitrage away any attempts at preventing trade.

The only way America can make its trade war work is to convince a substantial slice of the world economy to put in place similar restrictions to those being imposed by Washington. But as the Micron example shows, these restrictions bring with them counter-restrictions — and this grim cycle can quickly escalate, destroying the companies caught in its wake. Countries like South Korea are simply not interested in getting involved.

Meanwhile, the United States is still trying to revive diplomatic relations with the Chinese following Secretary of State Antony Blinken’s announcement that he was cancelling his trip to Beijing after the Americans shot down a Chinese balloon earlier this year. At the G7 meeting over the weekend, President Joe Biden referred to the incident as a row over a “silly balloon” and said that he expected diplomatic relations to thaw very soon. Washington has clearly realised that the Chinese are not willing to play ball with any attempt at a “hardline” diplomatic strategy.

This last year has produced a series of lessons for the US and its allies that, in a rapidly changing world, there are limits to their power, both hard and soft. China is not Iran, or even Russia. Trying to isolate the country economically and diplomatically is near-impossible, and may well end up isolating the country attempting to impose the measure. In the coming months, it seems increasingly likely that America will have to revise its China policy.

America is losing the semiconductor battle to China

The trade war continues to heat up, and now the boundaries are starting to be defined. On Sunday, the Chinese government announced that semiconductors from the American company Micron would be banned among operators of “critical infrastructure” in China. The ban could arguably have been worse —...

unherd.com

Interesting approach - and i dont disagree with it. If you are prepared to "give it" as the USA is fond of doing, then you have to be prepared to also "take it". Guess we are seeing that now - more muscular from China than I was expecting..

 

[jhungary]

Interesting approach - and i dont disagree with it. If you are prepared to "give it" as the USA is fond of doing, then you have to be prepared to also "take it". Guess we are seeing that now - more muscular from China than I was expecting..

Well, they would have banned Qualcomm if they were indeed flexing muscle......Micron share on semi conductor market is around 4.6% (that's the entire world) which mean it's most likely miniscule share in China.

 

[silverox]

Micron uses political means to attack competitors. As early as 30 years ago, Micron used the name of national security to ask members of the US Congress to legislate to ban Japanese semiconductor companies.

This kind of political means to suppress competitors is the most unscrupulous used by Micron. Therefore, China has to choose to ban the sales of Micron products in China as a counterattack

 

[gambit]

Micron uses political means to attack competitors. As early as 30 years ago, Micron used the name of national security to ask members of the US Congress to legislate to ban Japanese semiconductor companies.

This kind of political means to suppress competitors is the most unscrupulous used by Micron. Therefore, China has to choose to ban the sales of Micron products in China as a counterattack

Are you sure it was not about 'dumping' or selling below market value just to drive your competitor(s) out of business while your government support you?

 

[beijingwalker]

Micron gauges the damage after China’s sales ban, as South Korean firms stand to fill its void, Mainland China and Hong Kong-headquartered customers represent about 16 per cent of Micron’s revenue​

• The ban’s impact on Micron will vary depending on how China defines critical information structure, says chief financial officer Mark Murphy
• Without Micron products, Chinese companies are likely to turn to South Korean chip makers like Samsung and SK Hynix, analysts say

Published: 10:00pm, 23 May, 2023

Micron Technology, the largest US memory chip maker, is assessing its losses following a partial sales ban of its products in China, as South Korean firms like Samsung Electronics and SK Hynix stand to benefit from its absence.

The impact of the ban on Micron will depend on the details of Beijing’s restrictions, such as its definition of critical information infrastructure operators (CIIOs), which have been prohibited from buying the company’s products, said Micron’s chief financial officer, Mark Murphy, at a JPMorgan conference in Boston on Monday.

“We are currently estimating a range of impact in the low single-digit percentage of our company’s total revenue at the low end, and high single-digit percentage of total company revenue at the high end,” he said.

Beijing on Sunday said products from the Boise, Idaho-based firm posed a “national security risk”, an allegation that the US commerce department said has “no basis in fact”. Micron has said it would maintain communications with Chinese authorities.

The Cyber Security Review Office under the Cyberspace Administration of China, which announced an investigation into Micron products in late March, did not disclose which products it reviewed or the methods it used to review them.

“We remain unclear as to what security concerns exist, and we’ve had no complaints from customers on the security of our products,” Murphy said. “We look forward to enabling our customer success in China within the confines of local laws and regulations.”

In China, CIIOs generally include a large range of sectors, such as communications and information services, energy, transport, water resources and finance. Micron currently expects the new ban to exclude consumer electronics manufacturers, such as smartphone makers, according to Murphy.

Micron will lose close to 10 per cent of its revenue if it loses customers in networking, server and cloud, and government-owned sectors that use its advanced memory chips, according to estimates by market intelligence provider TrendForce.

Mainland China and Hong Kong-headquartered customers represent about 16 per cent of Micron’s revenue, according to the Nasdaq-listed company’s filings.

Indirect sales through distributors to China, along with direct sales, make up about a quarter of its total revenue, said Murphy.

China’s move against Micron, seen as a retaliation against Washington’s tightened export controls of advanced US semiconductor technology, could shake up the memory chip supply chain in China and prove a boon for Korean chip makers.

Samsung and SK Hynix, the two largest memory chip makers in the world, have production facilities in China and the technical capabilities to adequately replace Micron’s chips, analysts say.

TrendForce data shows that in the first quarter of this year, Micron had a 28 per cent market share of China’s DRAM chips, used in everything from television sets to smartphones, behind Samsung’s 43 per cent.

While the Biden administration has reportedly requested South Korea not to fill any market gap in China if Micron was banned, so far, there has been no signs that Seoul will intervene.

South Korea’s vice-minister of trade Jang Young-jin said it would be up to Samsung and Hynix to make their own judgment on the situation, according to a Financial Times report on Monday.
“Seoul has never restricted semiconductor trade with China,” said an expert with ties to South Korean policymakers, who spoke on condition of anonymity.
“Companies including Samsung and SK Hynix are very market-driven and generate [a major part] of their revenues from the Chinese market.”

Samsung and Hynix did not respond to requests for comment.

China’s ban will have a limited impact on global memory chip demand in the short run, as the market is suffering from an oversupply, according to Brady Wang, a Taipei-based semiconductor analyst with Counterpoint Research.

If the ban goes on for two or three years, however, South Korean players can reap the benefits of Micron’s absence in China, he said.
But if South Korea chooses to limit its memory chip exports to China, it would make Beijing’s task of replacing US chips more difficult, according to Richard Windsor, research director at Counterpoint.

Regardless of whether Chinese manufacturers will be restricted from accessing Korean chips, the Micron ban may deter some of them from relying as heavily on foreign semiconductors, according to Ben Yeh, an analyst with technology market research firm Canalys.

“In the future, they may consider adopting a greater allocation to domestic makers as a result of this situation. This potential shift in their sourcing policies could have broader implications for the industry,” he said.

US chip maker Micron gauges the damage after China’s ban

Depending on which Chinese entities are prohibited from purchasing products from Micron, the impact on its total revenue could range from low to high single-digit percentage, the company’s finance chief says.

www.scmp.com

 

[CIA Mole]

America is losing the semiconductor battle to China​

Beijing's Micron ban shows that other countries want no part of the US trade war​

BY PHILIP PILKINGTON
Tuesday, 23
May 2023

The trade war continues to heat up, and now the boundaries are starting to be defined. On Sunday, the Chinese government announced that semiconductors from the American company Micron would be banned among operators of “critical infrastructure” in China. The ban could arguably have been worse — Beijing could have banned imports of the chips altogether — but the American company will still feel the pinch, given that it derives around 16% of its revenue from China and Hong Kong.

Shortly after the announcement, South Korea signalled that it would not do anything to prevent the Chinese buying chips from their companies as a substitute. Last month, the White House asked Seoul to prevent the American chips from being substituted, but South Korea shrugged it off, insisting that it was a matter for their companies to decide. Even if they wanted to, imposing such a ban would be difficult, with one industry leader pointing out to the Financial Times that “even if we increase our supply to Chinese customers, how can they examine all these deals individually and judge that the increased volume comes from us, replacing Micron’s?”

South Korea’s refusal to damage its companies to fulfil the desires of the D.C. foreign policy establishment shows that there are hard limits to Washington’s trade war. American strategists seem to assume that the products over which they are picking fights are not easily replaceable; that, in economics-speak, they are “non-fungible”. But, as with Russian crude oil, we are seeing the global market work its magic and arbitrage away any attempts at preventing trade.

The only way America can make its trade war work is to convince a substantial slice of the world economy to put in place similar restrictions to those being imposed by Washington. But as the Micron example shows, these restrictions bring with them counter-restrictions — and this grim cycle can quickly escalate, destroying the companies caught in its wake. Countries like South Korea are simply not interested in getting involved.

Meanwhile, the United States is still trying to revive diplomatic relations with the Chinese following Secretary of State Antony Blinken’s announcement that he was cancelling his trip to Beijing after the Americans shot down a Chinese balloon earlier this year. At the G7 meeting over the weekend, President Joe Biden referred to the incident as a row over a “silly balloon” and said that he expected diplomatic relations to thaw very soon. Washington has clearly realised that the Chinese are not willing to play ball with any attempt at a “hardline” diplomatic strategy.

This last year has produced a series of lessons for the US and its allies that, in a rapidly changing world, there are limits to their power, both hard and soft. China is not Iran, or even Russia. Trying to isolate the country economically and diplomatically is near-impossible, and may well end up isolating the country attempting to impose the measure. In the coming months, it seems increasingly likely that America will have to revise its China policy.

America is losing the semiconductor battle to China

The trade war continues to heat up, and now the boundaries are starting to be defined. On Sunday, the Chinese government announced that semiconductors from the American company Micron would be banned among operators of “critical infrastructure” in China. The ban could arguably have been worse —...

unherd.com

anyone who thinks current china can achieve any competitive form of semiconductor independence is a joke

china will soon start to regress technologically once the effects of the new dirty commie policies kick in

it took china 20-30 years to see the fruits of deng xiaoping's pro market policies, and everything looks fine for now, but soon we will see the disasterous effects of xi's anti-human policies

 

[beijingwalker]

anyone who thinks current china can achieve any competitive form of semiconductor independence is a joke

china will soon start to regress technologically once the effects of the new dirty commie policies kick in

it took china 20-30 years to see the fruits of deng xiaoping's pro market policies, and everything looks fine for now, but soon we will see the disasterous effects of xi's anti-human policies

We'll see, actually during Xi's tenure, China's scientific and technological capabilities advanced pretty fast.

China Surpasses US As Top Contributor To Nature Index Research Articles

China Surpasses US As Top Contributor To Nature Index Research Articles May 23, 2023 Zenul Abideen From January to December 2022, China had a Share of 19,373 among the 82 journals tracked by the Nature Index, compared to 17,610 for the United States. For the first time, China has surpassed...

defence.pk

US also banned cooperation with China on space technology and development , barring China from the international space station a decade ago, and look at it now, did they stop China's space program?

 

[CIA Mole]

We'll see, actually during Xi's tenure, China's scientific and technological capabilities advanced pretty fast.

China Surpasses US As Top Contributor To Nature Index Research Articles

China Surpasses US As Top Contributor To Nature Index Research Articles May 23, 2023 Zenul Abideen From January to December 2022, China had a Share of 19,373 among the 82 journals tracked by the Nature Index, compared to 17,610 for the United States. For the first time, China has surpassed...

defence.pk

US also banned cooperation with China on space technology and development , barring China from the international space station a decade ago, and look at it now, did they stop China's space program?

u seem to misunderstand

all of china's current progress is due to deng xiaoping (and also credit to the chiense people), xi did nothing to help any of it

there's always a lag in policy and effects, u can already began to see xi's disasterous policy in the high unemployment rate and low birthrates and slow GDP growth, soon there will be a stagnation in technological development

talent was flowing into china in previous years, now it's flowing out again.

only reason china hasn't deteriorated faster is again due to chiense people, no thanks to xi's governance

xi only looks fine right now because of the accumulated wealth from deng's legacy. soon xi will waste all of it and china's future



the 2 leaders i truly admire in asia, lee kuan yew and deng xiaoping, the only ones who realize that capitalism and free markets are the only path forward.