A Chinese flag is displayed next to a "Made in China" sign seen on a printed circuit board with semiconductor chips, in this illustration picture taken Feb 17, 2023. BEIJING: Chinese chip companies targeted by Washington with fresh export controls have vowed to speed up supply chain localisation and said they would be able to continue production thanks to recent efforts to build equipment stockpiles.
Jiangsu Nata Opto-Electronic Material, which manufactures materials used in chipmaking, told Chinese news outlet Yicai it had stocked up and would also make domestic substitutions, but did not provide specifics. Capital expenditure by the Chinese chip industry next year will likely fall by US$10 billion, or about 30 per cent year-on-year, to US$35 billion, as a result of these curbs, Jefferies analysts said in a note.
"This was as close to the continuation of the status quo in terms of it's making things very difficult for manufacturers at the leading-edge but it's not going to disrupt that progress any more than the existing regulations," said Jeff Koch, an analyst at research group SemiAnalysis.The exclusion from the entity list of ChangXin Memory Technologies , China's leading manufacturer of a key component in AI chips, surprised some.
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