The US is working on legislation targeting Chinese memory suppliers, and according to a new proposed 'rulemaking', the use of YMTC and CXMT could be banned for government products.
YMTC, SMIC & CXMT Are Now Targeted In a Proposed Legislation, Limiting Their Adoption Across Commercial Products
The debate over integrating Chinese memory into consumer-grade products has emerged recently amid DRAM shortages. The 'Big 3' suppliers are currently busy with enterprise demand, leaving little capacity behind for consumer products. However, one of the major factors hindering the likes of CXMT from supplying DRAM chips to mainstream manufacturers is US legislation, and it appears this could be a major problem in the near future. Under a new rulemaking issued by the Federal Acquisition Regulatory Council (FAR), the use of chips from CXMT, YMTC, and SMIC is intended to be cut off from commercial products.
“Covered semiconductor product or service” is defined to include semiconductors, products that incorporate a semiconductor product, or services that utilize a semiconductor product, that are designed, produced, or provided by SMIC, CXMT, YMTC, or any of their affiliates, subsidiaries, or successors.
- FAR Council
The proposed rule is an amendment to Section 5949 of the FY23 National Defense Authorization Act, which previously imposed limitations on products from Chinese chip companies. The FAR Council has laid out a framework for how the ban on Chinese components in commercial products would operate, and one major aspect of this amendment is that the limitations apply to products worth $15,000 or less. This includes off-the-shelf items and commercial IT and telecommunications services.
The FAR council has also recommended an extensive review of all electronic products currently in official use. And, if more items are purchased before December 23, 2027, the new limitations won't apply to them. The amendment is currently open for public review until April 20, which means the above-mentioned constraints aren't entirely factored in, but it does imply that the administration is keen on reducing the influence of Chinese elements in government-end products.
When we talk about the consumer segment, one of the most significant problems with integrating CXMT/YMTC into laptops, mobiles, and PCs is that manufacturers will find it challenging to use chips from Chinese suppliers in a landscape where government use is forbidden. We have seen reports that major PC manufacturers have contacted CXMT about potential DRAM collaboration, but it would be interesting to see whether the talks materialize into an actual integration.
News Source: Dan Nystedt
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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