US policy is failing to stop China from turning YMTC into a Huawei-style, national memory chip champion and eliminating others from the market.
China Tech Threat last year, “As currently written, the SMIC licensing policy appears designed to give the company access to nearly all the semiconductor manufacturing equipment, technologies, and other goods it needs to make semiconductors. With BIS denying less than 1 percent of license applications for SMIC, our concerns appear to have been validated.”
ChangXin Memory Technologies is another Chinese company BIS should put in its crosshairs. As China Tech Threatextensively in 2020, CXMT enjoys extensive support from the Chinese government and corporate leaders serving in key Communist Party roles. CXMT follows Chinese playbook for market domination, in this case gunning for control of the dynamic random access memory space.
The Commerce Department is clearly failing on its mission to promote and protect US technologies from China. Many of its existing restrictions are not enforced, and bad players don’t get blacklisted. YMTC should have been on the Entity List years ago; now it’s poised to become the global champion. It looks like CXMT will be another one that gets away if Commerce doesn’t act. One thing is certain: US tool makers book record profits while Americans’ privacy and security take the backseat.
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