Latest news with #JeffreyKessler
Time of India
24-06-2025
- Business
- Time of India
Why Huawei's new laptop is being regarded as evidence of how America's 'China ban' is hurting one of the biggest Chinese company
FILE (AP Photo/Andy Wong, File) Huawei Technologies new MateBook Fold relies on a 7-nanometer chip made by Semiconductor Manufacturing International Corp. (SMIC), using technology from years ago, indicating that U.S. sanctions continue to hinder China's progress in advanced semiconductor development, Bloomberg reported, citing Canada-based consultancy TechInsights. This chip uses the same 7nm process as Huawei's Mate 60 Pro, which surprised U.S. officials in 2023. In contrast, Taiwan Semiconductor Manufacturing Co. is set to mass-produce 2nm chips, three generations ahead, later this year. The foldable notebook-tablet hybrid, launched in May, runs on Huawei's HarmonyOS and reflects Beijing's push for tech self-reliance amid U.S.-led restrictions, Bloomberg noted. However, China struggles to access cutting-edge chipmaking tools, as ASML Holding NV is barred from selling advanced lithography machines to Chinese firms. TechInsights stated, 'This likely means that SMIC has not yet achieved a 5nm-equivalent node that can be produced at scale,' highlighting the impact of U.S. technology controls on SMIC's ability to compete with leading foundries. America's China threat and fear The US sees China as a key rival in the field of artificial intelligence. The rise of DeepSeek earlier this year sending shock waves across US technology companies and wiping billions from their valuation. In addition to efforts to prevent China from securing advanced semiconductor manufacturing equipment, Washington is blocking Chinese companies from acquiring Nvidia's high-end AI chips for training, citing national security concerns. Beijing, on its part, is now pinning its hopes on Huawei and SMIC when it comes to advanced chipmaking. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play Chess on Your PC, Free Play Classic Chess Install Now Undo Despite Huawei's 2023 debut of a China-made 7nm chip, progress has stalled, with U.S. export controls limiting Huawei to producing only 200,000 Ascend AI chips in 2025, according to U.S. Under Secretary of Commerce Jeffrey Kessler, Bloomberg reported. Washington views China as a rival in AI, especially after DeepSeek's global emergence in 2025, and continues to block access to Nvidia's high-end AI chips. Huawei's founder Ren Zhengfei, in an interview with People's Daily, downplayed U.S. curbs, suggesting techniques like chip stacking could mimic advanced semiconductor results. AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Korea Herald
23-06-2025
- Business
- Korea Herald
Samsung, SK hynix on edge over US chip waiver rollback
South Korean chipmakers are facing renewed uncertainty over their operations in China, as Washington reportedly considers revoking waivers that have allowed them to bring in American chip equipment for facility upgrades. Samsung Electronics and SK hynix, Korea's leading chipmakers with major semiconductor fabs in China, were reportedly notified last week that the US government plans to cancel the exemptions, according to a report by The Wall Street Journal on Saturday. The waivers had been granted under the Biden administration's export controls, which aim to prevent the shipment of advanced chip manufacturing tools — including those from Applied Materials and Lam Research — to China. To avoid disrupting global supply chains, however, the US had offered one-year waivers to major chipmakers such as Samsung Electronics, SK hynix and TSMC, allowing them to import equipment without individual licensing. In the latest development, Jeffrey Kessler, former undersecretary of commerce for industry and security during US President Donald Trump's second term, reportedly informed the firms of the government's intention to cancel the waivers. Kessler described the move as 'part of the Trump administration's crackdown on critical US technology going to China.' White House officials added that the licensing system for chip equipment could resemble China's controls on rare-earth exports. While the US has stepped up efforts in recent years to curb China's growth in the semiconductor sector, South Korean chipmakers have already taken steps to mitigate potential risks, leading to expectations of limited immediate impact. However, the companies remain on alert, as their Chinese fabs still account for a significant share of their total production. 'The US regulations are primarily intended to limit Chinese companies, not global firms, so there could be exemptions,' an industry official said. 'We are closely monitoring the situation, as no formal measure has been announced yet.' Kim Yang-paeng, a senior researcher at the Korea Institute for Industrial Economics and Trade, noted that companies have had time to prepare. 'Restrictions on expanding facilities or bringing in US-made equipment to China have long been in place,' he said. 'While the latest move may have some impact, it is not likely to pose a significant threat to Korean firms for now.' Samsung Electronics operates a NAND flash production facility in Xi'an, Shaanxi Province, and a chip packaging plant in Suzhou, Jiangsu Province. The company relies on China for roughly a quarter of its chip sales. SK hynix, which recently became the world's largest memory chip-maker, runs a DRAM fab in Wuxi, Jiangsu Province, a packaging facility in Chongqing, and a NAND flash plant in Dalian, Liaoning Province, which it acquired from Intel in 2020. According to industry sources, the company produces about 40 percent of its total DRAM output and about 30 percent of its NAND flash volume in China. Just three months ago, SK hynix completed a final payment of $2.24 billion to Intel for the Dalian facility.
Business Insider
21-06-2025
- Business
- Business Insider
Stock Market News Review: SPY, QQQ Slip as Recession Signal Flashes, Fed Officials Split on Rate Cuts
Both the S&P 500 (SPX) and Nasdaq 100 (NDX) closed the Friday trading session in the red as geopolitical and economic uncertainty continue to persist. Confident Investing Starts Here: The market received a morning boost after President Trump announced on the Juneteenth holiday that the U.S. would hold off from striking Iran's nuclear facilities for two weeks to allow a window for negotiations. However, those gains were quickly erased after The Conference Board's Leading Economic Index (LEI) flashed a recession signal. The LEI has fallen by 2.7% for the six months ended May, with its annualized six-month growth rate dropping below -4.1%, one of the two requirements that trigger a recession warning. The other requirement occurs when the six-month diffusion index reaches or drops below 50, which signals that most of the components within the LEI are falling. The components include manufacturing, labor market, sentiment, and credit statistics, among others. The recession indicator isn't perfect, although it did precede the recessions of 2000 and 2008 while issuing false signals in 2022, 2023, and 2024. Meanwhile, chip and AI stocks took a hit after a Wall Street Journal report that the U.S. Department of Commerce (DOC) is planning on restricting Samsung, SK Hynix, and Taiwan Semiconductor's (TSM) access to American chip-making technology in their Chinese factories. The three companies currently enjoy a blanket waiver on moving U.S. chip-making equipment to their Chinese facilities, although DOC export controls head Jeffrey Kessler has informed them that the waivers could be cancelled. The policy hasn't been set in stone yet, however. In interest rate news, Fed officials are split on when to cut rates sooner or later. Fed Governor Christopher Waller supports a rate drop as soon as July while Richmond Fed President Thomas Barkin doesn't see a rush for lower rates while the labor market and consumer spending remain healthy. 'I don't think the data gives us any rush to cut… I am very conscious that we've not been at our inflation target for four years,' said Barkin in an interview with Reuters.
Yahoo
20-06-2025
- Business
- Yahoo
Chip equipment stocks fall after US plans to revoke China waivers
-- Taiwan Semiconductor Manufacturing (NYSE:TSM) stock fell 2%, Lam Research (NASDAQ:LRCX) shares tumbled 5%, and Applied Materials (NASDAQ:AMAT) dropped 4% following reports that a U.S. official plans to revoke technology waivers for chipmakers operating in China. Jeffrey Kessler, who leads the export controls unit at the Commerce Department, has informed major semiconductor manufacturers including Taiwan Semiconductor Manufacturing, Samsung Electronics (KS:005930), and SK Hynix of his intention to cancel blanket waivers that currently allow them to ship American chip-making equipment to their factories in China without applying for separate licenses each time, according to the Wall Street Journal. The potential policy change is reportedly part of the Trump administration's broader efforts to restrict critical U.S. technology from going to China. If implemented, the move could create significant disruption both diplomatically and economically, coming shortly after the U.S. and China established a trade truce in London. White House officials have stated that this action would not represent a new trade escalation but would instead align the licensing system for chip equipment with China's existing system for rare-earth materials. They added that the U.S. and China continue to make progress on completing their London agreement. "Chip makers will still be able to operate in China. The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process," a Commerce Department spokesman said. The semiconductor equipment sector is particularly vulnerable to changes in U.S.-China trade policy, as many companies rely on access to the Chinese market for significant portions of their revenue. Related articles Chip equipment stocks fall after US plans to revoke China waivers QXO won't participate in bidding war for GMS - source Reddit in talks to use Sam Altman's World ID for user verification - Semafor
CNBC
20-06-2025
- Business
- CNBC
Chip stocks fall on report U.S. could terminate waivers for Taiwan Semi and others
Semiconductor stocks declined Friday following a report that the U.S. is weighing measures that would terminate waivers allowing some chipmakers to send American technology to China. Commerce Department official Jeffrey Kessler told Samsung Electronics, SK Hynix and Taiwan Semiconductor this week that he wanted to cancel their waivers, which allow them to send U.S. chipmaking tech to their factories in China, the Wall Street Journal reported, citing people familiar with the matter. The VanEck Semiconductor ETF declined about 1%. Nvidia, Qualcomm and Marvell Technology fell about 1%, while Taiwan Semiconductor slipped about 2%. U.S. chipmakers have been hit with curbs over the last few years, limiting the ability to sell advanced artificial intelligence chips to China due to national security concerns. During its earnings report last month, Nvidia said the recent export restriction on its China-bound H20 chips hindered sales by about $8 billion. Nvidia CEO Jensen Huang told investors on an earnings call that the $50 billion market in China for AI chips is "effectively closed to U.S. industry." During a CNBC interview in May, he called getting blocked from China's AI market a "tremendous loss." Read the full WSJ report here.
