November 05, 2004
Commentary:
Hello? Terrorism isn't the ONLY threat out there
By Jack GrantQuestion: Aside from the economic concerns relating to unfair trade, a biased regulatory regime, and a lack of respect for intellectual propery protection, do we really want to be giving China access to technology needed to make state of the art computer chips?
From Silicon Strategies:
Late last month, Chinese silicon foundry provider SMIC disclosed that it has signed a deal to develop 90-nm process technologies with Texas Instruments Inc. SMIC (Shanghai) hopes to have 90-nm "pilot production" by the first quarter of 2005 (see Oct. 28 story).The deal would signal the further erosion of a post Cold War-era pact -- known as the Wassenaar Arrangement -- set up to limit the dissemination of technology that could have potential military use.
Tools capable of processing 0.25-micron wafers had been the perceived limit under U.S. controls, but a number of chip-making startups, joint ventures, and major semiconductor manufacturers in China have announced plans for 0.18-micron and below processes.
Barrett expressed concern about U.S. export control policies in relation to SMIC's efforts to deploy 90-nm technology in China. "You have to say, 'What the hell is going on?' Barrett said. "[SMIC's efforts] blatantly goes against U.S. regulations."
In an interview with Silicon Strategies after the press event, the Intel executive cried foul about the unfair business practices in China. "If I wanted to build a 90-nm, 300-mm fab in China, the U.S. government would say, 'Absolutely not.' "
There appears to be a double standard in China. China's own chip makers can set up fabs with 90-nm technology. And U.S. chip-equipment makers have a rough time competing in China, due to unwieldy and outdated laws.
"U.S. export controls and regulations do not help U.S. companies compete in China relative to our competition," he said. "I don't like fighting with one hand tied behind my back."
As I asked above, putting aside purely economic concerns, is essentially giving the last large Communist government on the planet access to advanced integrated circuit manufacturing technology really a good idea? I realize that they are actually allowing privately owned companies to form and flourish, but fundamentally, it is still a Communist nation and a strategic competitor to the United States.
I have an opinion, and my opinion is: This is a very, very, very Bad Idea.
What do you think, and why?
Posted by Jack Grant at 14:48 on 5 November 2004I agree. As for why... I could do a dissertation on it as I lived in Taiwan for two years, but I think it boils down to just a strong feeling I have now, "Because it's China and look at history". I know, stupid and infantile.
Seriously, we should be very worried about China. They have been flying under the radar with Iraq and N. Korea. They are up to no good.
Posted by: Boudicca at November 5, 2004 05:08 PM
