China appears to be making strides in cutting-edge chips, despite U.S sanctions

Various U.S. export restrictions and sanctions have hit China's semiconductor industry which was already seen as generations behind other countries. Now Chinese firms appear to be making sanction-defying progress in chips, but there are some big challenges to overcome.
0:00 - Sponsor
0:30 - Welcome
5:20 - Stat of the week
6:16 - Why semiconductors are so important
7:19 - How the US limited Chinese access to chip technology
9:11 - The complexity of the chip supply chain
12:15 - ASML's role
15:29 - SMIC's challenge
18:30 - Looking ahead to the future
20:12 - How far ahead is ASML?
21:57 - Bitcoin rally
23:40 - Neuralink
26:50 - Sony
29:27 - Lockbit hack
32:42 - Sora
36:36 - Stat of the week reveal

[@le_nonexistent8528]

The amount of sinophobia triggered purely to maintain US hegemony on the internet is absolutely insane 💀

[@qake2021]

😯 very true ‼️😁😁😁✌️

[@philipwong895]

It was more cost-effective for China to purchase reliable Western chips, benefiting both sides. China spends more on chip imports than on oil. The US sanctions forced China to develop its domestic supply chain. When self-sufficient, China can provide the world with more affordable chips. The US is converting its biggest customer to be its biggest competitor. The US and its allies are developing their own supply chain, but it cannot be competitive without access to a large market. The US is sparing no effort in its Tonya Harding competition strategy. The Chinese are very grateful to the US for pushing them towards self-sufficiency. Thanks to the US, China now has its own GPS system and space program. More sanctions, please.

[@rap3208]

It's not even the US that's the competitor because it doesn't manufacture anything, it really are the koreans, japanese and taiwanese who are the powerhouse in chip production. The US only wants to sabotage chinese progress in technology by bullying the latter three to go along with their sanction. They are failing miserably, they said the chinese are generations behind about 4 years ago and now they found out the chinese are just heels behind.

[@mengsiongkheng113]

Well said, as usual they have failed to make a correct assessment. China has a huge population and more importantly a super huge population of highly intelligent and STEM graduates, they have one of the highest IQ in the world. Not mentioned anywhere but most of the IT, Engineering, Maths graduates, Masters and PHDs are from China. Just look at industry, tech companies, research institutions are ethnic Chinese. Is it any surprise that they can climb the chip manufacturing.

[@sih9696]

Ha ha, so true! Win-win is the best policy!

[@aslampervez2294]

5 nm Chinese chips is coming this year. they have started developing 3 nm chips based on saqp technology

[@JA-pn4ji]

"China doesn't have an ASML equivalent",... well I never! There is a Chinese company called SMEE.

[@user-si9xk1mg1o]

😂😂😂 love those Chinese they are way smarter and more wise than than the west

[@sih9696]

Only the wise yearn for peace and harmony amongst all.

[@Maverick-xz5oi]

You ban them from buying a critical resource and now they are learning how to make it themselves. Shocker

[@Giganova]

6:16 to skip NPC small talks

[@ClosedProductions]

Bless you, beautiful person.

[@Trump2024FJB]

Thanks

[@zombl337og]

our savior !

[@xfactor6099]

thanks alot

[@politicalobserver7366]

LMAO

[@ganboonmeng5370]

All the sanctions only means losses for American chip maker...😅😂😊 And as DTrump correctly predicted " Apart from the chinese football team..China is able to do anything once they decided "😂

[@melanineyedoc]

You were expecting them to roll over and play dead?

[@naturalisedhker7953]

Their tenacity is admirable

[@communismisthefuture6503]

Omg you’re so wise!

[@chdv5736]

Winners keep winning losers keep talking about the winner

[@Anders01]

What I think many Western experts miss is that China has heavily been researching and developing semiconductors since the 1950s. And what I have read about SMIC's N+1 and N+2 processes, there is no mentioning of ASML which I suspect is more of a Western assumption rather than an established fact. I believe China has developed its own lithography machines at least since the 90s when they were in a leading position publicly.

[@danielli9167]

That was true. But then they focused on the more cost effective areas first. Now they went back and focused on the chips.

[@donkeychan491]

As China develops better chips, these will become available to all America's enemies (long list).

[@sih9696]

1. Never underestimate the wisdom of the Chinese. 2. Bullying the Chinese is never smart. 3. In Chinese culture, mutual respect is the key to opening many doors. Note: Unfortunately, it will take many years for the West to comprehend all of the above.

[@ObakuZenCenter]

^ This.

[@mgronich948]

There are many parts of the supply chain. In the design area, China seems to be on a par with the US. In the manufacturing area, the leaders are TSMC/Taiwan, Samsung, ASML/Dutch. But not mentioned is the synchrotron light source being built in China to produce EUV light. If this works out, it may be a way for China to leapfrog ASML. Also everyone assumes SMIC makes Huawei's 7nm and 5nm devices. Huawei doesn't say who made the chips.

[@happymelon7129]

2024-4-9 China officials tell telecom carriers to phase out foreign chips by 2027. This is U$A dream come true .. China helping U$A to stop chip companies from supplying Chinese companies. So great to see the two governments working together.

[@donkeychan491]

Ha ha... yes, China is now "sanctioning" itself

[@chanahyingchan5070]

Huawei is launching it's P70 series in early April 2024 using the Kirin 9010 purportedly a 3nm chipset . Go figure.

[@blokin5039]

China is developing rapidly but what you write is pure nonsense. 5nm feom SMIC will come end of this year.

[@aslampervez2294]

Perhaps it is 5 nm chips

[@uselesstable2058]

Haha where is it huh????

[@user-fs9kc1vo4o]

7nm

[@virtuous8]

banning your own customers is very dumb

[@comentarioscomentar]

Hay un pais que... Se mete en asuntos internos de absolutamente todos los paises pero no resuelven los de ellos mismos, como el fentanilo y la pobreza... Intenta poner palos en la rueda y perjudicar a todo pais que los supere, como lo hace con china... Está evitando que paises con mejores avances tecnologicos puedan realizar inversiones en distintas partes del mundo amenazando a los paises receptores de esas inversiones... Han intentado detener el gasoducto NORDSTREAM durante años, con sanciones, bloqueos y distintas presiones, muchos años antes del conflicto entre rusia y ucrania, hasta que finalmente lo volaron, ni siquiera les interesó que el pais receptor de ese gas es su propio aliado y ahora han perjudicado toda su economía... La investigacion sobre la voladura del gasoducto NORDSTREAM fue detenida inmediatamente, por supuesto tampoco permitieron a rusia, pais constructor, participar de la investigacion... Utilizan a otros paises para enfrentar a poderosas potencias militares no aliadas porque ellos no se atreven a enfrentarlos solos, es mas facil mandar a morir a otros y encima venderles armas a que vayan ellos, por eso, siempre van a lo último de todo, tiran 2 misiles y se adjudican la victoria, falsas victorias por supuesto... Mismo Pais que controla mas del 90% de los medios de comunicacion de todo el planeta, lo cual es una verdadera invasion propagandistica, no importa que canal o medio mires, leas, o escuches. No importa cuantas veces cambies de canal. Siempre tendrán las mismas narrativas, que ellos son los buenos y todos los demas son malos. Claro que para dar la sensacion de libertad permitirán a algún que otro periodista dar una versión distinta para demostrar una "falsa democracia", es lo que se llama "disidencia controlada"... Mismo pais que cuando rusia fue el primer país en crear la vacuna contra el covid (la SPUTNIK) le ordenó a la OMS no aprobarla simplemente porque no la hicieron ellos mismos... Mismo pais que hace mas de 20 años se esta "llevando" el petroleo de siria, libia e irak, en este ultimo instaló todo un gobierno completo a sus sevicios, sin mencionar que han invadido ese pais con la mentira de las "armas de destruccion masiva"... Es muy importante mencionar que las mismas personas que piden que rusia se retire de ucrania no piensan que otro pais tenga que retirarse primero de siria, libia e irak donde a la vista de todos se llevan el petroleo y que luego rusia le siga en ese comportamiento para ir por orden cronologico... Mismo pais que hizo un pacto nuclear con iran y luego rompió el pacto y ademas mató de un bombazo a un general iraní... Mismo pais que sanciona a cuba sumiendola en una pobreza absoluta, lo mismo hicieron con venezuela en donde tambien produjeron una terrible migracion ademas de pobreza, de hecho el presidente que hizo eso dijo publicamente "pudimos habernos quedado con todo su petroleo y ahora tenemos que pagarlo", una verdadera locura, sin condena de ningun organismo internacional... Mismo pais que se atribuye haber "inventado" todo lo que hay en el mundo y que todos los demás le roban sus cosas y eso claramente no es asi, no son los unicos que saben pensar en el mundo, en otros paises tambien saben pensar, saben sumar, saben matemáticas, saben quimica, saben física, de hecho ya otro pais los ha superado en cantidad de patentes anuales... Mismo pais que se adjudica tambien haber inventado el "libre comercio" y eso claramente no es asi, china hace mas de 5 mil años que comercia con europa, y ahora, el nuevo "amigo" de europa con tan solo 250 años de existencia le pide a europa que no comercie con china... Muchas personas consideran este escrito como "odio", no simplemente como "la verdad", ellos consideran que no debes decir todo esto aunque sea la verdad, no tienes que decirlo porque sino es odio. Claro que no piensan lo mismo cuando leen cosas totalmente aberrantes que dice la gente sobre china, eso lo consideran totalmente normal y naturalizan que esta bien que se haga. Y por supuesto ni se atreverian escribir que eso se trata de un comentario de "odio"... Si hay un conflicto entre rusia y ucrania entonces por que motivo rusia deberia negociar con un tercer pais?, que ni siquiera está en el continente europeo y está al otro lado del oceano... Por que motivo intentan crear un conflicto entre China y la provincia china de Taiwan? si ya hay un acuerdo firmado entre todas las partes llamado "politica de una sola china", el cual ha firmado tambien el mismo pais que le entrega armas a taiwan para que tenga una guerra con china... Si ya has firmado un acuerdo entonces ya no te metes mas en ese asunto a mas de 12 mil kilometros de distancia fogoneando otro conflicto, debes ocuparte de tu propio pais y dejar el mundo en paz... Este mismo pais se atribuye el permiso de calificar a los demas paises de "dictaduras" o "democracias" cuando nadie le otorgó ese derecho, no solo votar es democracia, ademas si detrás de ese voto estan los mismos politicos desde hace 50 años es como si no sirviera de nada, democracia es tambien cuidar a tu poblacion, no permitir drogas, tiroteos, hambre, que viva la gente en la calle, darles seguridad, darles infraestructura, etc...

[@dkesq1]

Why do you worry what China does? Focus on yourself ffs 😂

[@Gman979]

All these talking heads are talking on American national security concerns as if they have a monopoly over it. Every friggin country in the world has national security laws too. Lol

[@morninghope1]

WTF, the "most dominant and advanced company in the supply chain is not in China and not Chinese". TSMC is the most dominant and they are Chinese. So that's factually not correct.

[@StylishHobo]

It's Taiwanese. That's what the T stands for genius.

[@BieZhang]

@@StylishHobo Check out where their founder was born.

[@dangin8811]

​@@StylishHobothats china

[@aslampervez2294]

​@@StylishHoboeven un recognise Taiwan as part of China

[@qake2021]

🥸🥸🥸 did you know that many engineers working at tsmc in Taiwan are Chinese. Yes they are born and educated in China. 😃😃😃🇨🇳🇨🇳🇨🇳👏👏👏

[@mgronich948]

Using DUV lithography, TSMC was able to make 7nm chips. Intel fell 6~7 years behind TSMC trying to get to 10nm and 7nm. DUV lasers are 193nm. While the EUV source is 13nm. The technique for making features smaller than the light source wavelength is called multipatterning. Going from 193nm to 7nm requires a huge number of multipatterning steps. But going from 7nm to 5nm is just one more step. SMIC may be charging 40% more than TSMC for 7nm chips. But when TSMC starts manufacturing 7nm in Ariz it will also be 40% more expensive than TSMC is Taiwan. 40% is a big number but they will get 10's of B of business because Chinese companies can't buy from TSMC.

[@2KSnSLifestyle]

The capacity of the Arizona plant is relatively small compared with TSMC in Taiwan or China for that matter. In fact China is the major supplier of legacy chips. China can also restrict the Arizona plant by restricting the supply of critical materials.

[@qake2021]

👍👍🇨🇳🇨🇳🇨🇳👏👏

[@qake2021]

👏👏🇧🇷🇷🇺🇮🇳🇨🇳🇿🇦➕️👍👍

[@qake2021]

👏👏👏👏👏😃👍👍👍

[@_SJ]

Hi Tom Chitty 👋🏻 You are always my favorite on CNBC ♥

[@CNBCi]

You can catch him hosting Beyond the Valley every week.

[@_SJ]

@@CNBCi Thank you ♥ A huge Tom fan here 👍🏻

[@jkhan5888]

Real gold is not afraid of blazing fire! JKH

[@KimAlmighty1]

would have been nice if you guys wrote it was a podcast so people knew i love the other type of youtube clips you guys make that is informative

[@CNBCi]

Thanks for the feedback. We'll look into updating the thumbnail so that's more clear.

[@Mike-ys4sr2023]

The problem is All these companies that produce a particular component for chips have to use USD so US can sanction them all if do not do as US say. 😅 😂

[@comentarios-comentarios]

Unfair competition. Threats, coercion, economic pressures. Is that the free market that they preach so much around the world? That's not something funny, they are harming the entire planet. They do not allow countries to progress and put spokes in their wheels to hinder their normal development.

[@WhiskeyFatimah]

The initial crap talk is really annoying.

[@AIPretendingToBeHuman]

I’m from the future, sell your US chip stocks before Friday, 4/19

[@user-yy9hk9od9u]

They are making chips from 5 year old tech. It's not cutting edge.

[@levelazn]

which country besides china can do that by itself?

[@2KSnSLifestyle]

What makes you think China is using 5 year old tech? Huawei or SMIC is not going to disclose its top secret manufacturing technology. Same with TSMC.

[@donkeychan491]

That's more than the US can do on its own

[@2KSnSLifestyle]

@@donkeychan491 Chip manufacturing is highly classified. China is not going to disclose its full capabilities.

[@sih9696]

The world thought that making 5nm chips by China would take at least a decade. Then suddenly, out of nowhere....? 5-year-old tech? Think the speed of "catching up".

[@qake2021]

🥸🥸🥸 a lot assumptions‼️🥳🤡🐒🍌🍌🍌🍌🍌🍌

[@qake2021]

👍👍😃😃🇨🇳🇨🇳🇨🇳😃😃👏👏

[@chichung888]

You have to give it to the Chinese, they are top people at embedded spyware.

[@mgronich948]

That's why every US congressman wants to prevent Chinese EVs from entering the US market. The auto-industry says this would be an extinction level event.

[@Gman979]

Dllm

[@ensteffo]

There have never been found any spyware from Chinese products, but European US allies have all been officially spied on by the US so you are really just projecting.

[@sih9696]

Their teacher is the US. Any idea that by US law, all telecom and computer equipment must leave a backdoor for you know who?

[@g1kluang]

Of course after years of stealing valueble tech secret, finally they are back in the scene 😂

[@backemf89]

keep crying as you can not prove your statement in legal way

[@yomivideo7636]

If Chinese companies steal patents from those companies, why not sue them? If not, why do you slander Chinese companies? (By the way, the United States is the country with the most lawsuits in the WTO)

[@Skankhunt42-xl9fq]

@@backemf89actually it has been proven many many many times before that China has stolen American 🇺🇸 and other western technologies.

[@camocas]

@@yomivideo7636just google and you will find many Chinese who have been sued for IP theft, including former asml engineer who has fled charges for IP theft and he’s now working for hauwei

[@naturalisedhker7953]

They stole 5G before America even had 5G tech…how could they!

[@DontUputThatEvilOnMe]

The key word hear is China “appears” to make strides.

[@ensteffo]

Is this cope from you? because the actual chips does not only "appear" to be real, but are actually on sale right now.