US Equipment Bypasses New Rules, Reaches China for Advanced Chip Production

Chinese companies are purchasing US chipmaking equipment to produce advanced semiconductors, despite new export restrictions imposed by the US to hinder China's semiconductor industry. The restrictions aim to prevent Chinese chipmakers from acquiring US chipmaking tools for manufacturing advanced chips at or below the 14 nanometer node. However, importers can still buy the equipment by claiming it is for use on older production lines, making it difficult to verify its actual purpose. The report also reveals that China stockpiled equipment during the lag time between the US restrictions and similar moves by Japan and the Netherlands. The report suggests an annual evaluation of export controls on chipmaking equipment to China to address the gaps in the US rules.