Yangtze Memory Technologies Corp (YMTC), China's biggest NAND flash memory manufacturer, has successfully raised billions of US Dollars in new capital to adapt to challenging US restrictions. According to the report from Financial Times, YMTC, which was added to a trade blacklist in December and barred from procuring US equipment to manufacture chips, exceeded its funding target. However, the exact amount remains undisclosed. The capital increase became necessary due to YMTC's substantial spending on finding alternative equipment and developing new components and core chipmaking tools. This financing round was oversubscribed by domestic investors, reflecting support for YMTC amid tightening US restrictions.

Last year, YMTC managed to raise 50 billion Chinese Yuan or about 7 billion US Dollars for equipment. Spending it all on the supply chain, the company is now looking to bolster its offerings with additional equipment for its memory facilities. One of the investors in the funding rally for YMTC has made a statement for Finanical Times: "If Chinese companies have equipment that can be used, [YMTC] will use it. If not, it will see if countries other than the US can sell to it. If that doesn't work, YMTC will develop it together with the supplier." This statement indicates that the company is looking into several options, where one is simply developing its custom machinery with the suppliers.

The Chinese semiconductor industry is advancing, and interestingly, it is growing rapidly under sanctions, even with the blacklisting of companies by the US government. China's semiconductor industry is mainly represented by companies like Semiconductor Manufacturing International Corp (SMIC) and Huawei Technologies, who are leading the investment and progress in both chip manufacturing and chip design. According to the latest interview with Bloomberg, former TSMC Vice President Burn J. Lin said that the US government and its sanctions can not stop the advancement of Chinese semiconductor companies. Currently, Lin notes that SMIC and Huawei can use older machinery to produce more advanced chips.

Even so, SMIC could progress to 5 nm technology using existing equipment, particularly with scanners and other machinery from ASML. Development under sanctions would also force China to experiment with new materials and other chip packaging techniques that yield higher performance targets. SMIC has already developed a 7 nm semiconductor manufacturing node, which Huawei used for its latest Mate 60 Pro smartphone, based on Huawei's custom HiSilicon Kirin 9000S chip. Similarly, the transition is expected to happen to the 5 nm node as well, and it is only a matter of time before we see other nodes appear. "It is just not possible for the US to completely prevent China from improving its chip technology," noted Burn J. Lin.

NVIDIA's presence in high-performance computing has steadily increased, with various workloads benefiting from the company's AI and HPC accelerator GPUs. One of the important markets for the company is China, and export regulations are about to complicate NVIDIA's business dealing with the country. NVIDIA's major partners in the Asia Pacific region are Inspur and Huawei, which make servers powered by A100 and H100 GPU solutions. Amid the latest Biden Administration complications, the US is considering limiting more export of US-designed goods to Chinese entities. Back in 2019, the US blacklisted Huawei and restricted the sales of the latest GPU hardware to the company. Last week, the Biden Administration also blacklisted Inspur, the world's third-largest server maker.

In the Morgan Stanley conference, NVIDIA's Chief Financial Officer Colette Cress noted that: "Inspur is a partner for us, when we indicate a partner, they are helping us stand up computing for the end customers. As we work forward, we will probably be working with other partners, for them to stand-up compute within the Asia-Pac region or even other parts of the world. But again, our most important focus is focusing on the law and making sure that we follow export controls very closely. So in this case, we will look in terms of other partners to help us." This indicates that NVIDIA will lose millions of dollars in revenue due to the inability to sell its GPUs to partners like Inspur. As the company stated, complying with the export regulations is the most crucial focus.

Huawei's HiSilicon subsidiary, which specialized in the design and development of semiconductor devices like processors, has made a big announcement today. A while back, the US government has blacklisted Huawei from using any US-made technology. This has rendered HiSilicon's efforts of building processors based on Arm architecture (ISA) practically useless, as the US sanctions applied to that as well. So, the company had to turn to alternative technologies. Today, HiSilicon has announced the new HiSilicon Hi3861 development board, based on RISC-V architecture. This represents an important step to Huawei's silicon independence, as RISC-V is a free and open-source ISA designed for all kinds of workloads.

While the HiSilicon Hi3861 development board features a low-power Hi3861 chip, it is the company's first attempt at building a RISC-V design. It features a "high-performance 32-bit microprocessor with a maximum operating frequency of 160 MHz". While this may sound very pale in comparison to the traditional HiSilicon products, this chip is used for IoT applications, which don't require much processing power. For tasks that need better processing, HiSilicon will surely develop more powerful designs. This just represents an important starting point, where Huawei's HiSilicon moves away from Arm ISA, and steps into another ISA design and development. This time, with RISC-V, the US government has no control over the ISA, as it is free to use by anyone who pleases, with added benefits of no licensing costs. It is interesting to see where this will lead HiSilicon and what products the company plans to release on the new ISA.

The US Government, specifically the Department of Defense (DoD), has under the Trump administration blacklisted the Chinese smartphone maker Xiaomi. This was a way to impose sanctions on the Chinese company as it was believed that Xiaomi was involved with the Chinese military, thus the Trump organization had problems having US investors taking a share of it. However, the company has issued legal proceedings against the US government for making such claims, and now the US govt., administrated by the President Joe Biden, has reached an agreement with the company. Xiaomi managed to prove that it is not owned or controlled by the Chinese military, so the US DoD has removed the company from its blacklist.

This has caused the company shares to soar on the Hong Kong stock exchange by as much as 6.7% after the news appeared. "The Biden Administration is deeply concerned about potential U.S. investments in companies linked to the Chinese military and fully committed to keeping up pressure on such companies", said Emily Horne, a spokeswoman for the White House National Security Council.

Access to affordable electronics isn't looking much of a reality for US citizens, as the US government (presently in the outgoing days of Trump's administration) has now announced the addition of Chinese tech company Xiaomi to its military-connections blacklist. The move, enforced via a presidential executive order, now also demands U.S. investors to divest, or sell out, of affected holdings of any companies on the blacklist, by Nov. 11 this year. This addition to the US blacklist is done in accordance with the US National Defense Authorization Act of 1999, and doesn't place XIAOMI in the Entity list, of which Huawei is a part of, which would impede the Chinese tech giant from acquiring US technology and components for fabrication of its products.

The US Department of Defense (DOD) said in a statement that "The Department is determined to highlight and counter the People's Republic of China's (PRC) Military-Civil Fusion development strategy, which supports the modernization goals of the People's Liberation Army (PLA) by ensuring its access to advanced technologies and expertise acquired and developed by even those PRC companies, universities, and research programs that appear to be civilian entities". Xiaomi has been classified as one of nine "Communist Chinese military companies".

The Trump administration has reportedly been considering adding to Chinese chipmaker SMIC (Semiconductor Manufacturing International Corporation) to the trade blacklist of Chinese companies, restricting the company of doing any business with the United States and/or with any of its affiliates. The original report comes from Reuters and it states that the move came from Pentagon after considering whatever SMIC should be placed on a blacklist. It is so far unclear if other US agencies support the decision, however, it should be public in the near future. The company has received the news on Saturday and it was "in complete shock" about the decision. Shortly after the news broke, SMIC stock has fallen as much as 15% amid the possible blacklist. If SMIC would like to continue working with American suppliers, it would need to seek a difficult-to-obtain license from the government.

Update 28th September: The United States government hasofficially imposed sanctions on the Chinese chipmaker SMIC. The company is now under US sanctions and is placed on a trade blacklist.

Yes, that's right, SOPA might have been set back for now, but the vested interests from the big media corporations (music/movies/news etc) that want it implemented unsurprisingly aren't sitting idle and are pushing for ever more draconian measures aka 'SOPA Plus'. A digital music report (PDF) asks for everything that was in the original SOPA and then some, with a wishlist of seven 'fixes':

The protests to the widely condemned SOPA & PIPA "antipiracy" censorship bills have been a resounding success. They have gone viral with many, many websites blacking out and putting up protest pages, with big players taking part such as Wikipedia, Google, EFF, Reddit, Craigslist, Techdirt (greyed out) and many more taking part. Unsurprisingly, the bills' backers have not shown any sign of backing down (yet) but were prompted to make statements "wondering what all the fuss is about" to play down the damage done to their play for power, since they have recently made changes to them, such as removing the DNS blocking provisions - for now. Recording Industry Association of America (RIAA) senior vice president of communications Jonathan Lamy called the protests 'stunts': "It's a dangerous and troubling development when the platforms that serve as gateways to information intentionally skew the facts to incite their users and arm them with misinformation. It's time for the stunts to end and those who claim to care about rogue website theft to back up their rhetoric and work with us on meaningful solutions." This is the same RIAA that sued their own customers with extortionate "settlement" letters remember.

The draconian internet censorship bill, the Stop Online Piracy Act (SOPA) being lobbied for by wealthy big media corporations (mostly fronted by the RIAA/MPAA, News Corporation and the like) and currently being debated in Congress is still losing support wherever one turns. A week ago, we reported that GoDaddy initially supported it, but soon changed its mind as it immediately began to haemorrhage customers. Now, it turns out that many video games companies are also coming out against it and with no pressure against them required.

The Entertainment Software Association (ESA) is the game industry's trade association and stands firmly behind the much-despised bill, which means that the gaming industry as a whole is deemed to support SOPA. However, while some members openly support it, others just won't say so publically and some of its members actively do not support it, having made official statements to this effect. Here are just three of them: