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Why The U.S. Department of Commerce Blacklisted 28 Chinese Entities


Electronic Engineering Special News On March 2, a document from the U.S. Department of Commerce showed that the United States once again added 28 Chinese entities to the "Entity List" (Entity List) for unreasonable reasons involving national security, including 4Paradigm Technology Co., Ltd., Hong Kong BGI Research, Inspur Group Co., Ltd., Loongson Technology, Suzhou Centec Communications Co., Ltd.,  AIF Global Logistics Co., Ltd., Rayscience Optoelectronics Innovation Co., Ltd., etc. Companies included in the so-called Entity List must obtain authorization from the U.S. government to obtain U.S. products and technologies.

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(Credit: the U.S. Department of Commerce document)


The chip war between China and the United States has never stopped. Since the promulgation of the US Chip Act, the United States has invested heavily in the chip industry and at the same time it has not forgotten to suppress Chinese chip companies. biotechnology and quantum computing, etc.U.S. aims to stop China from becoming an advanced power in chips.


China is strongly dissatisfied with this and firmly opposes it. We urge the US to respect basic facts, abandon ideological prejudice, stop abusing various pretexts to unreasonably suppress Chinese companies, and provide fair, just, and non-discriminatory treatment for Chinese companies. China will also continue to firmly safeguard the legitimate and legitimate rights and interests of domestic companies, and support Chinese companies in safeguarding their own rights and interests in accordance with the law.


Today, chips are an essential part of modern life even beyond the tech industry’s creations, from military gear and cars to kitchen appliances and toys.The chip-making boom is expected to create a jobs bonanza of 40,000 new roles in factories and companies that supply them, according to the Semiconductor Industry Association. That would add to about 277,000 U.S. semiconductor industry employees.


U.S. companies led chip production for decades starting in the late 1950s. But the country’s share of global production capacity gradually slid to around 12 percent from about 37 percent in 1990, as countries in Asia provided incentives to move manufacturing to those shores.


Today, Taiwan accounts for about 22 percent of total chip production and more than 90 percent of the most advanced chips made, according to industry analysts and the Semiconductor Industry Association. And TSMC announced its net revenue for February 2023: On a consolidated basis, revenue for February 2023 was approximately NT$163.17 billion, a decrease of 18.4 percent from January 2023 and an increase of 11.1 percent from February 2022. Revenue for January through February 2023 totaled NT$363.23 billion, an increase of 13.8 percent compared to the same period in 2022.


While the U.S. remains the leader in chip design, much of the manufacturing has moved overseas. The most technologically advanced chips are vital to the U.S. military and economy, and more than 90 percent of these chips are now produced in Taiwan.


“We still have a dependency that is not being impacted in any way shape or form,” said Michael Hurlston, chief executive of Synaptics, a Silicon Valley chip designer that relies heavily on TSMC’s older factories in Taiwan.

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