NDAA Ban Proposed Expansion to Cover 3 PRC Chipmakers

** ******, *** *** **** ***** require ******** *** ************ ********* - and * ***** ***** ** ***** industries - ** ****** ****** ****** for *********** ***** ********** ****** **** sell ** *** ******* ********** ** use **********.

****** **** ****, ** ******* *** expansion ******** ***, ***** ** ******** from ********, ****, ***, ******, *******, and ****** *** ** **** ****** the ************ ******.

********

** ******** *, ****, ****** ******** Leader ***** ******* (*-**) *** ******* John ****** (*-**)********** ** *********** ***** ******* *** ************ ** 3 *** ************* *****, ***** ********** the ********* ** ******* ** *** additional ***** ** *** ****:

• ******** ****** ************(****) (******** "********")
• ************* ************* ************* ***********(****)
• ******* ****** ************ ***********(****)

*** ********* ***** ***** *** **** Section *** ************ ********* ** ***** for *****, *********, *** ******, ** the ***** *********. **** **, ******* purchases ** ******** ********** ***** ******** would ** ******, *** *** ******* using ******* **** ******* ***** ******** could *** ******* ******* *********, **** if **** *** ** ********* ** fulfilling * ********.

*** *******, ** ****** *********** ******* to *** ********* **** ******* ************* components **** *** ** *** * companies, ****** ***** ** ****** ******* contract **** *** ** ********** ** supply *** ************* ***** *******.

(*** ****:**** ***** ************ *** / ********** Guide)

*** ******** *** ********** ** *** 2023 ******** ******* ************* *** (****), which ********** ****** ** *** *** of *** ********* **** (****). ******* 889 ********* ****** ** **** ** an ********* ** *** **** ****. However, ** **** **** *** ********* would *** **** ****** ***** ****, three ***** *****.

******

******** ******* *** ***** ** *** chipmakers ***** ****** ********** **** ********** kettles ** ****. ****** ***** ************ and ******************, ************* ******** - ******** chips/SOCs, ***** ******, ****, ***. - are ********** ** ****** *** ****** electronic *******.

******** *** ** ******* ****** ***** ** ****** ***,********** ********** ******** ** ** **% ** its ***** ****** ****** *** ******* from *** *******.** *******, ***** ****** ***** ********** "******** **** ******* *** ***** national ******** *******,"*** ******* ****.

*** ********* *** **** ******** ******* 889's ****** ** *** ******** *** surveillance ********. *** **** *** ******* extends ****** ***** *** ********* ** covering *** ******** **** ****** **********, since **** ************* **** ****** ********* SOCs,**** ** ********* *-***. ************* **** *** **** ** ensure ** ********** **** * ********** chipmakers, *** *** ****** ***** ** the ****.

SMIC - ******** ********* *** *************

**** ***** ******* * *********** ********** challenge - ** * ***** *******, producing * **** ******* ** ********** - ***** ** ******** **** ******** from *************. *******, *** ************* *** replied ** **** **** ********* **** do *** *** ********** **** **** or ****.

******** ****** "** **** *** ********** any ************* ******* **** **** ** our **** ********," ********** **** ********** may ** ******* ** ***-**** ********.

** **** ***** ** *** *** aware ** *** ********** ** *** of *** ******** **** ***** *******. However, ***** **** **** ** * foundry, *** * **** ******, *****'* some **** ******** ** *******, ***** is ** ******** ** *** ******** team.

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* *** ******* **have *** ********** any semiconductor content from SMIC ** *** ** *** **** ********. [emphasis added]

**** ****** ** **** *** **** any "****** ********" ********** "******** **********" from *** **********, *** ** ***** "to *** * ****** ************* ** the ********* ********* ** ******* *** and *** ************** ****** ** *** comment *** *******."

We ***’* **** *** ****** ******** **** ******* ******** ********** from any of these companies. But we need ** **** ****** **** **** ** *** * ****** ************* of the suggested expansion of Section 889 and its implementation before ** *** ******* *** *******. For instance, there are wordings in the suggested extension that need to be clarified, such as how “critical technology” or “essential component” should be interpreted. [emphasis added]

******* ****** ** ****** ** **** into *** ****** *******, ******* **** manufactures * **** ******* ** ********** from ***** ** "******, ***********, ********* controllers, ***."

***-"****** ********" **** ********* *** ** more ****** ** ******* **** ********** since *** ********* ******* ******** ***** memory *** **** *********** **** *** common ** ***** ******* ******* *** rare ** *******.

*** *** ****** ****** ************* **** they ** *** **** *** ********** from *** * **********.

Genetec: "**** ******* * *** ** ****, *** ***** *******"

******* ****** ** **** ** ********** "will ******* * *** ** ****, for ***** *******, *** **** **," adding "****’* ******** *** **** ****** to **** * * ***** ***** period. **** ** * *** **** if **** ***** **** *********."

******* *** **** * ***** ********* of ******** *********-****** *** **** ** components **** *****, *********, *** ******. That **** ******* ***** *** *********** answer ** ** ***** ** ********* indicates *** ******* *** ********* **** be * ******* *** * **** variety ** *****.

*******, ********* ********** **** ** ****** for *************-******* ********* - **** ******, which *** **** ** ******* ******* - ****** ***** ***** *** ******** like *******. ******* **** ***** ** the *********** "**** ***** ********* **** Texas **********, ******, *****, ***. **** emit * ***** **** ** ***** that *** ** *******," ***** ***** likely ****** ** **********.

*******'* **** ********:

**** ** * ***** ****** ** the ************* *****, ********* *** ******* equivalent ** ****. **** **** *** TSMC,a *** ** ***** ** ********* *** ***** **** ** *********** ***** ***** (they use it in “fabless” mode), even if the chip itself has been designed in the US. Most often, these are simpler chips with no cybersecurity or IP concerns: like diodes, transistors, switching controllers, etc.

This ********** **** Not just look at the CoO. If the proposed expansion is adopted, it ** ******** **** ***** ********* **** ***** **********, ******, *****, ***. **** **** * ***** **** ** ***** **** *** ** *******, but it’s also possible that they won't.

*** ******* ************ ********, ** **** do **** *** ********* **** *** assistance ** ** ******** ****, *** undertake ******** ************** **** *** ************* manufacturers.

*** ***-***-***** ** ********** ******** **** those **** ****, ***, *******, ***., only *** *** *** ** **** assessment ***** **** *** *** ****** of *** ****** *** *** *** material ****. ***, **** **** **, they **** **** ** ** **.

*****’* ** *** *** *** ** such ** ********** **** **** * quick ******. *********, * **** *** be ************ (***) ** **** *** example, **** ******** ** ***** ** Malaysia (** ***********), *** **** * CoO ** ********. *** **** ***** still ** ** **** ************* *****, even ** *** * ***=*****.

That’s ******** *** **** ****** ** **** * * ***** ***** ******. **** ** * *** **** ** **** ***** **** *********. [emphasis added]

3 *** ********** **********

** *** *, **** **** ** publicly-listed, *** ** ******************* ** $*.** ******* **** $*.* billion ** ******. *** ******* *********** *****-*****, ****** *************** ******* ******* ** ***** ***********.

**** ** ***************** ** *** ** ********** ** Commerce*** ** *** ******** ****, *** requires ** ********* ** ****** * license ** ** ******** **** ****. In ******** ****,*** ** ********** ** ******* **** designated**** ** "***** ** **********" ** the ******'* ********** ****, *** ********** US ***********.

**** *** ******* ** **** **** $24 ******* ** ******* **** *****-****** Tsinghua ********. ** ******* ******** ***** memory ********** - **** *****, *** controllers, ***. - ****** ******* *******,*** ********* *********. ** ****** ******, YMTC *** ********* *********** *********** ******* *** ******** ****.

****, ******** ***** ** ********, *** founded ** **** ** ******* **** products **** ******* **** *** *** government-backed ****** ********** ********** ****. ** 2019, ****** **** **** **** *** on *** ********* ** ****** *** **** ********** *****:

[***] ******* ******* ** **** ** about ** ****** *** *******'* ***** mass ******** ** ******* ******** *** memory *****, ********* **** ****** ******* Electronics *** ****** ********** ** * $100 ******* * **** ******, ** Beijing ***** ** *** ***** *** self-sufficiency ** **** ************.

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*** *******, ***** *** ******** $* billion ** * **** ********** ***** in *** ******* ******* **** ** Hefei, ******* ** ***** ********** ** these ******* ****** ********** ** *** end ** *** ****, **** ****.

National ********, ************ ******** **** *********

******** ******* *** ******, *** ********** worked ******** ** ******* ***** *** ******* ************ $*** ******* **** ** ******** chip **********, *** ******* ** ******* national ******** ******** ****** ** ******** vulnerabilities ** ************* ******** *** * PRC-controlled ************* ****** *****.

******* *********** ** ****** **"********** ******** ********, ***** ******** ************* manufacturing **** **** ********, *** ***** foreign ********* ** *** ****** ********* market." ** *****, "************* ********** *** services *** ****** **** **** ************ in ******* *********** ******** * ********* major ***** ** ************* *** *****-******* and **** *******."

**** ******** ******-**** ** ******** **** chip ******** **** ****** ************ ******* between *** ** *** *****, ************ as *** ********** ** * *** invasion ** *** ******* ** ****** increases. **** ** *** *****'* ******** computer ***** *** ******** ** ******, putting *** **** ** ******* **** of * ****** ************ ** ******.

*** ********* ** **** ****** ****** bolstering ** ******** ********** ** ***** and ******** ****, ************ *** ******* New ****'******** ************* ********. ** *** ************, ******* **** the ********* ***** "****** ******* ** jobs," *** "*** ************* ****** ****** should ** ******* **** ** **!"