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China to benefit from US technology transfers
Wednesday 9 January 2008
The US government is making exceptions to the rule that high-tech exports to China have to be licensed.
So far five firms have been granted exemption from the requirements. Four of these are semiconductor-related companies: Applied Materials’ Chinese facilities; National Semiconductor’s Chinese facilities; the Shanghai Hua Hong NEC Electronics Company; and SMIC, the Shanghai foundry.
One result of the exemption is that SMIC is now about to receive 45nm CMOS technology from IBM. Up to now, Chinese companies have been restricted to technology transfers which are not at the leading edge. A 45nm process is, however, undoubtedly leading edge.
According to a report last week from a US body called the Wisconsin Project On Nuclear Arms Control, the US government’s exemptions are ‘a stealth attack on export controls’.
The exemptions by the US government seem to contravene the Wassenaar Arrangement, made in 1996, by which 40 countries - including the UK, the US, Japan and Korea - agreed not to transfer to China advanced technologies which could be used for weapons manufacturing.
According to the Wisconsin Project, the Shanghai Hua Hong NEC Electronics Company is majority-owned through a ‘corporate chain’ by the China Electronics Corporation which produces military equipment.
It is reported that a dozen more companies are waiting to get the green light from the US government to be able to export high-technology to China without a licence.
There have been complaints in the past from the Americans that European producers of semiconductor manufacturing equipment have sold machinery to China in breach of Wassenaar.
So far five firms have been granted exemption from the requirements. Four of these are semiconductor-related companies: Applied Materials’ Chinese facilities; National Semiconductor’s Chinese facilities; the Shanghai Hua Hong NEC Electronics Company; and SMIC, the Shanghai foundry.
One result of the exemption is that SMIC is now about to receive 45nm CMOS technology from IBM. Up to now, Chinese companies have been restricted to technology transfers which are not at the leading edge. A 45nm process is, however, undoubtedly leading edge.
According to a report last week from a US body called the Wisconsin Project On Nuclear Arms Control, the US government’s exemptions are ‘a stealth attack on export controls’.
The exemptions by the US government seem to contravene the Wassenaar Arrangement, made in 1996, by which 40 countries - including the UK, the US, Japan and Korea - agreed not to transfer to China advanced technologies which could be used for weapons manufacturing.
According to the Wisconsin Project, the Shanghai Hua Hong NEC Electronics Company is majority-owned through a ‘corporate chain’ by the China Electronics Corporation which produces military equipment.
It is reported that a dozen more companies are waiting to get the green light from the US government to be able to export high-technology to China without a licence.
There have been complaints in the past from the Americans that European producers of semiconductor manufacturing equipment have sold machinery to China in breach of Wassenaar.
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