Chip Technology

US to block use of Chinese semiconductor equipment

The US Congress has introduced a new act to prevent the Chinese and “other foreign entities of concern” from infiltrating the US’s domestic chipmaking industry. The bill, the Chip Equipment Quality, Usefulness, and Integrity Protection Act of 2024 (Chip EQUIP Act), follows on from the CHIPS and Science Act, enacted in 2022, which earmarked roughly $280 billion in new funding to boost US domestic research and manufacturing of semiconductors. It included $39 billion in subsidies plus tax breaks for US chipmakers. However, China has recently matched this with a new $40 billion investment in its own semiconductor industry, which will heavily focus on chip manufacturing equipment. In April, Chinese tech giant Huawei announced investing in new R&D capabilities to rival US, Japanese, and Dutch firms.

Critical infrastructure at risk from modem flaws

“Critical flaws” have been identified in modems deployed in millions of devices worldwide. Cybersecurity firm Kaspersky has issued a report warning companies of severe security vulnerabilities in Cinterion cellular modems. According to Kaspersky, Cinterion modems are cornerstone components in machine-to-machine (M2M) and Internet of Things (IoT) communications and now offer a back door for all kinds of threat actors. They support various applications, ranging from industrial automation and vehicle telematics to smart metering and healthcare monitoring. Gemalto, the initial developer of the modems, was subsequently acquired by Thales. In 2023, Telit acquired Thales’ cellular IoT products business, including the Cinterion modems.

China bans US semiconductors

A new bamboo curtain has fallen across China, with a reported blanket ban on US chips. The move is bad news for long-time Silicon Valley tech giant chipmaker Intel, whose Chinese sales accounted for roughly a quarter of its global revenues. Big names join Semiconductor ban But China’s retaliatory move may not only be bad news for US chip makers such as Intel and AMD but also for China’s own communications infrastructure. The order from China’s Ministry of Industry and Information Technology includes big players China Telecom, China Mobile, and China Unicorn, together with other Chinese operators. All are now obliged to submit draft deadlines for the replacement of foreign microchips. It is uncertain to what extent the CCP actually believes that Intel and AMD chips are likely to have built-in spyware or anything of the sort. The ban can be seen as part of a broader strategy on the part of the Chinese Communist Party (CCP) to end its country’s long-term reliance on US technology.

Tough Times ahead for Apple

These are troubled times for Silicon Valley tech giant, Apple. Hard on the heels of the US Justice Department suing Apple for monopolizing the smartphone market comes news of a major security flaw in Apple M-series chips (M1, M2, and M3). The US Justice Department appears determined to call time on Apple’s long-standing domination of the smartphone market. It holds that “Apple’s broad-based, exclusionary conduct” makes it harder for Americans to switch smartphones. Apple also stands accused of undermining innovation for apps, products, and services, and imposing extraordinary costs on developers, businesses, as well as on consumers.

Chip war with China heats up

As the Biden administration prepares to impose further limits on China’s access to leading-edge chip technology, news has broken over the weekend that Chinese hackers have been siphoning off some of Europe’s ground-breaking chip technology for years. The infamous Chinese hacker group Chimera, had access to the network of Dutch semiconductor giant NXP, for over two years, from late 2017 to the beginning of 2020. The hackers, believed to be backed by the Chinese Communist Party (CCP), are understood to have consistently stolen intellectual property, including, crucially, the company’s cutting-edge chip designs. According to sources close to the situation, the full extent of the threat has still to be disclosed.