Foreign media speculate on Chinese companies expanding 28-nanometer chip production, drawing U.S. concerns. China has stated its position many times before

Source: World Wide Web

[Global Network reports trainee reporter Qi Yue] Reuters reported on the 14th that SMIC, the largest chip manufacturer in mainland China, is expanding the production of 28-nanometer process chips, which has alerted the United States, and some lawmakers have tried to obstruct it. The U.S. government recently issued a chip ban in an attempt to suppress China in the field of technology, which has been repeatedly criticized by the Chinese side. The Chinese Ministry of Foreign Affairs stated that it resolutely opposes the US’s wanton generalization of the concept of national security, abuse of export control measures, and unreasonable suppression of Chinese companies.

According to Reuters, “28nm” refers to a chip technology that became commercially available in 2011. Dan Hutcheson, a chip economist at market research firm TechInsights, said the technology is still widely used in cars, weapons and the fast-growing Internet of Things devices.

According to Reuters, due to US export controls on China, SMIC is unable to produce advanced chips, but is increasing investment in mature technology chips. The company announced that it has built four new chip factories since 2020. The report quoted Samuel Wang, a chip analyst at Gartner Consulting, as predicting that after these factories are put into operation, the company’s chip production will more than triple.

The report also stated that Matthew Pottinger, a former US deputy assistant for national security affairs who studied chip policy at the Hoover Institution, claimed that “this (the expansion of China’s market share for this type of chip) will allow Beijing to rely on every 28-nanometer process chip. A country and every industry, whether military or civilian, has a huge influence, which is a big part of the chip industry.” Dan Hutcheson also hyped, “The Chinese can use this technology to occupy the market.”

A Reuters report mentioned that the United States has been strengthening high-tech restrictions against China since the Trump administration. This year, the United States cut off Huawei’s market and technology supply in the United States through a series of regulations, and also cut off an important supply of China’s advanced chip manufacturing.

The U.S. government has previously introduced a chip ban against China, and there are reports that the U.S. is grappling with the unintended consequences of the ban and preventing new measures from harming the U.S.’s own semiconductor supply chain. Chinese Foreign Ministry spokesperson Mao Ning said on October 14 that China firmly opposes the US’s wanton generalization of the concept of national security, abuse of export control measures, and unreasonable suppression of Chinese companies. The formation and development of the global industrial chain and supply chain is the result of the combined effect of market laws and corporate choices. Artificial restrictions for political purposes will undermine the stability of the production and supply chain, harm others and benefit oneself, and will only make the already fragile world economy worse. On November 13, Foreign Ministry spokesperson Wang Wenbin also stated in response to reporters’ questions that the United States has abused export control measures to hinder normal international trade in chips and other products, which will cause distortions in the global semiconductor supply chain and disrupt international trade.